Danone SA

In December 2022, the company's new 1.5°C near-term science-based targets were validated by the Science Based Targets initiative (SBTi). These targets aim to reduce absolute Scope 1 and 2 energy and industrial greenhouse gas (GHG) emissions by 46.3% and Scope 3 emissions by 42% by FY2030, using FY2020 as the base year. Additionally, the company commits to decreasing absolute Scope 1 and 3 Forest, Land, and Agriculture (FLAG) GHG emissions by 30.3% by FY2030. Scope 3 emissions, amounting to 20,614 ktCO2eq, constitute 95% of the company's total emissions of 21,659 ktCO2eq. Therefore, SBTi requires the inclusion of Scope 3 emissions in its targets. The company has also pledged a 30% reduction in methane emissions, equivalent to 1.2 million tCO2eq, from fresh milk by FY2030 compared to the FY2020 baseline, having reported a 13.3% reduction by FY2023.

The company has set climate targets aligned with the 1.5-degree pathway, aiming to reduce absolute Scope 1 and 2 emissions by 46.3% and Scope 3 emissions by 42% by FY2030, both from an FY2020 baseline. It submitted its target to achieve Net-Zero by 2050 to the Science Based Targets initiative (SBTi) for validation in 2023, and this target was validated by the SBTi in 2024.

The company is implementing decarbonisation plans with dairy ingredient suppliers by integrating decarbonisation targets into contracts and investing in practical projects. From 2017 to 2023, its collaboration with Royal Friesland Campina reduced emissions from ingredients by 22%. Since the 2021 launch of the Sustainable Dairy Partnership (SDP) with the Sustainable Agriculture Initiative Platform, over 74% of the company's dairy ingredient suppliers by volume have joined, with nearly half setting concrete sustainability goals. Additionally, the company collaborates with OP2B to support farmers in adopting regenerative practices, using tools like the Cool Farm Tool and CAP2ER to monitor greenhouse gas emissions. This has resulted in a 500 kton reduction in emissions from 2020 to 2023. Furthermore, action plans executed by milk farmers and suppliers have led to a reduction of 689,514 tCO2e, facilitated by initiatives such as the F4G program. CoolFarm farmers also achieved a reduction of approximately 504,951 tCO2e in 2022 compared to 2021.

The company’s North American programme has reduced over 119,000 tCO2e since 2017 by promoting regenerative agriculture, including increased cover crop planting and reduced tillage and pesticide use. Cover crops are utilised in 51% of the programme's area, compared to a national average of 4%, and reduced or zero tillage management is employed in 63% of the area, against a 33% national average. The programme is set for expansion with US Government support. In France, the 'Les 2 Pieds sur Terre' programme has helped farmers reduce GHG emissions by 10% since 2017, aiming for a 15% reduction by 2025. The company also provides financial and technical support for projects improving fertiliser usage through initiatives like the Farming for Generations alliance. In Spain, collaboration with Yara has optimised fertilisation plans, aligning nutrient requirements with crop needs to reduce fertiliser use, enhance soil health, increase efficiency, and cut costs. Additionally, the company has developed the Cool Farm Tool to aid the transition to regenerative practices and reduce emissions from fertiliser use in feed crops. This tool incorporates questions about these practices to evaluate the contribution of animal feed to milk’s carbon footprint.

To meet its methane reduction target, the company plans to support dairy farmers by improving herd and feed management, adopting regenerative practices, and developing inhibitor solutions. Danone Manifesto Ventures is investing in startups, including UK-based ZELP, which developed a device claiming to reduce cow methane emissions by over 50%, and US-based Symbrosia, which created a seaweed-based feed additive, SeaGraze, potentially reducing emissions by over 80%. The company is also the first corporate member of the Global Methane Hub's Enteric Fermentation R&D Accelerator, focused on scalable solutions for reducing methane emissions in dairy farming. Between 2020 and 2023, the company monitored its plan's impact, notably in the US through the USDA Climate Smart Commodities Grant, in Brazil via action plans through the Educampo Program, in Algeria with small-holder projects enhancing farm management, and in Belgium with pilot feed additives like Bovaer, reportedly reducing emissions by 18.3%.

In 2023, the company reported total Scope 1 emissions of 789 ktCO2eq, Scope 2 emissions of 256 ktCO2eq, and Scope 3 emissions of 20,614 ktCO2eq.

In its 2023 Methane Ambition disclosure, the company reports that milk-related emissions constitute 57% of its agricultural footprint and 70% of its methane emissions, with methane emissions from fresh milk recorded at 3,548 ktCO2e. The remaining 30% comes from indirect dairy ingredients. According to the 2023 CDP Climate report, the company states Scope 1 emissions from Agriculture/Forestry at 16,460 ktCO2e, calculated through the CoolFarm tool for various activities including feed production and manure management. The company's 2023 Annual Report acknowledges Scope 1 emissions from fresh milk production on its farms, comprising CH4 and N2O biogenic emissions, although these are not itemised. Scope 3 FLAG emissions total 12,888 ktCO2e, encompassing emissions from purchased milk and dairy ingredients. The company attributes 31.5% of GHG emissions, equal to 6,822.59 ktCO2e, to Scope 3 milk, and 20.1%, equal to 4,353.46 ktCO2e, to Scope 3 dairy ingredients. Additionally, 8% of total GHG emissions, or 1,732.72 ktCO2e, are from Scope 3 raw materials. However, it is unclear whether emissions attributed to raw materials include all emissions from feed or only those related to its farms, and whether indirect emissions from third-party-sourced feed are included in Scope 3. Further clarification is advised. The company integrates land-use change emissions into its GHG inventory as part of the Forest, Land, and Agriculture (FLAG) category, though it does not specify emissions solely from land-use change.

The company responded to the 2023 CDP climate change questionnaire and has disclosed that its GHG data is verified by a third-party auditor. In June 2023, it received a score of 75/100 from Moody's in the Food sector.

Between FY2022 and FY2023, the company reduced its Scope 1 emissions from 831 to 789 ktCO2eq, Scope 2 emissions from 276 to 256 ktCO2eq, and Scope 3 emissions from 23,100 to 20,614 ktCO2eq. This resulted in a total combined emission decrease from 24,207 ktCO2eq in 2022 to 21,659 ktCO2eq in 2023, representing an average reduction of 10.52% in absolute emissions. Despite these reductions, methane emissions increased from 3,494 ktCO2eq in 2022 to 3,548 ktCO2eq in 2023. The company's GHG inventory remains incomplete, as it does not clearly disclose emissions from feed farming.

In 2020, the company conducted a climate-related scenario analysis using methodologies such as RCP 8.5, RCP 2.6, and the IEA 2DS Transition Scenarios. The RCP 8.5 scenario was specifically employed to assess the financial impact of chronic physical risks, including water and heat stress, on its global upstream milk supply chain.

The company acknowledges that physical climate risks, such as severe droughts and flooding, affect the availability and price of agricultural commodities. To mitigate this, it has implemented regenerative agriculture, resulting in reduced price volatility. Upgraded irrigation systems have achieved a 75% reduction in water flow compared to traditional techniques. In its milk supply chain, the company recognises medium-probability water and heat stress, and potential financial impacts. In Spain, it has introduced a hybrid maize species to improve cow fibre digestibility and adapt to heat stress, and installed a shower system with fans and monitoring collars to alleviate heat stress. Romania has seen the establishment of a mobile oasis providing water, shade, and heat relief for cows, enhancing milk production. The company addresses energy price volatility by improving real-time visibility, implementing contingency plans, and streamlining raw material specifications with design-to-cost and design-to-value approaches. It manages gas and electricity supply risks through dual-energy sourcing in high-risk areas and commits to reducing energy consumption by 30% by 2025, while increasing renewable energy use. The company is aware of the carbon pricing system's risks, including emissions trading and taxes. It monitors developments in carbon pricing initiatives globally, sets emissions reduction targets for 2030, and pledges 100% renewable electricity usage by 2030, after joining the RE100 initiative in 2017. Financial impacts from climate risks are reported, including severe droughts in the United States, Russia, and Ukraine, and flooding in South-East Asia. Additionally, droughts in the US and Canada affected rapeseed supplies in 2021, and La Niña impacted several Southern Hemisphere regions. The company has not disclosed information on the rise in veterinary and medicine expenses.

In 2015, the company updated its carbon pricing to €35 per tonne of CO2 for capital expenditure approvals to drive investments towards lower carbon solutions, clean technologies, and renewable energy. The recent Climate Transition Plan includes the integration of climate-related investments into annual financial planning, ensuring decarbonisation investments are aligned with costs and strategic priorities. In its 2023 CDP Climate response, the company anticipates costs related to climate risk, estimating a potential €59.9 million impact if all operating countries impose a tax on Scope 1 emissions. The company identifies water scarcity as a risk due to climate change, potentially impacting water used in processes and spring water sources, with a financial impact estimated at €270 million annually, assuming a two-week disruption per site each year. In 2022, insurance costs for natural hazards, covering property damage, business interruption, and commercial liability, were €37 million. The company also maintains a self-insurance policy through its subsidiary Danone Ré, covering specific risks at an estimated €7.5 million per claim.

The company reports that soy-based feed constitutes less than 5% of the feed consumed by dairy cows in its supply chain. In Europe (Alpro) and North America, all soybeans are sourced from regions with minimal or no risk of deforestation. By the end of 2023, the company evaluated its soy sourcing for 91% of its milk volumes and identified that 40% is potentially at risk of deforestation due to insufficient origin visibility. Of this at-risk soy volume, 37% is offset by purchasing RTRS (Round Table on Responsible Soy) certified soy. Since 2017, the company has conducted forest-related risk assessments across its value chain, particularly focusing on soy used in feed, using the Cool Farm Tool (CFT) across 15 countries and the CAP2ER tool in France. The company further acknowledges that 40% of the soy it sources is exposed to deforestation risk. However, it does not disclose the specific regions where this high-risk soy is sourced.

The company’s Updated Forest Policy, released in 2022, pledges to achieve zero deforestation and conversion for key commodities, including palm oil, paper and board, soy, cocoa, and animal feed, by 2025. It has established a 2020 cut-off date to ensure zero gross deforestation and no deforestation linked to soy used in animal feed.

The company's global commitment to zero deforestation and conversion applies to all sourcing regions, including direct operations and its supply chain, covering 100% of soy at risk of deforestation.

By the end of 2022, the company evaluated the sourcing of soy for 91% of its milk volume, up from 86% in 2021. It reports that 52% of the soy comes from low-risk sources, with 7% certified. However, 41% of the soy is considered at risk, though 27% of this is offset through Round Table on Responsible Soy (RTRS) credits. In 2022, the company introduced third-party verification for its soy sourcing commitments, limited to soy used directly in plant-based products, not in animal feed. Enhanced disclosure on third-party audits or verification for embedded soy in feed is recommended. The company has submitted its latest CDP Forest Questionnaire for 2023.

The company is committed to achieving fully traceable and deforestation- and conversion-free supply chains for relevant commodities. However, it does not include information on deforestation in its supplier code of conduct or supplier selection process. The company is reducing its reliance on imported soy and mitigating risks associated with sourcing from deforestation-related areas. It promotes local soy alternatives for cow feed, supporting farmers in adopting regional protein sources. In Romania, projects aim for autonomy from imported soy by incorporating alternatives like sunflower and rapeseed cakes. This collaboration led to the consumption of 1,150 tonnes of locally grown soy in 2022. The company is also conducting soy cultivation trials in Egypt and reformulating animal diets to decrease overall soy dependency.

Since 2017, the company has used the Cool Farm Tool globally to assess soy feed volume and origin on a country-by-country basis, aiming to identify deforestation risks in fresh milk collection. In 2022, it conducted a more extensive assessment to address these issues and recommend a gradual shift towards deforestation-free soy in animal feed. A portion of the company's soy feed is ProTerra segregated certified, which includes measures for non-compliance. The company pledges to prevent transactions with non-compliant suppliers if there is a policy breach or unacceptable deforestation risk. By the end of 2023, the company analysed the sourcing of soy as feed for 91% of its milk volume. However, it reports that 40% of its soy supply is considered high-risk due to limited visibility on its origin, indicating 60% traceability in its animal feed soy.

The company is enhancing sustainability in its value chain by adopting regenerative agricultural practices. It is also committed to promoting local protein and exploring alternative protein sources to reduce reliance on imported soy for animal feed. Notably, the company has published a regenerative agriculture report detailing the outcomes of its programmes in the United States, France, and Mexico.

The company has not disclosed that it operates solely in regions of low water stress. Annual water risk assessments inform its actions, prioritising sites in high or extreme water-risk areas, as identified by the WWF Water Risk Filter. In 2023, it found that 50% of its production sites were in these areas and required them to develop active watershed preservation and restoration plans. Additionally, 31% of production sites were identified as being at risk due to physical, regulatory, or reputational factors. Facilities facing physical risks are required to reduce water consumption intensity and increase internal and external water reclaim. The company discloses the locations of facilities exposed to water risks in its CDP Water Security 2023 report, categorised by region and/or river basin. The company's efforts focus on preserving water resources, promoting water circularity, and enhancing wastewater treatment quality. It discusses initiatives to increase water use efficiency, particularly in areas of higher water stress. About 95% of its production facilities implement the 4R roadmap to optimise water usage and reinforce water's second life. The company reported a total water consumption of 32,945,000 m3 in 2023.

The company aims to reduce water consumption intensity by 50% by 2030, based on a 2015 baseline, or to achieve a best-in-class water ratio at production sites in high or extreme water-risk areas. By FY2023, progress reached 61%, an increase from 56% in FY2022. It reported 77.8% compliance with Clean Water Standards and 95% implementation of a 4R action plan across its facilities in 2023. The company targets a 50% reduction in the water ratio at sites identified as physically at risk by the WRF methodology by 2030, using 2015 as a baseline. This target applies specifically to those sites. In its 2023 CDP Water response, the company reported that 57% of at-risk sites achieved this target in FY2022.

The company reported a total water withdrawal of 60,985,000 m³ in 2023, with sources including rivers (2,486,000 m³), municipal sources (18,408,000 m³), and wells (40,090,000 m³). Between 26% and 50% of this water was withdrawn from water-stressed regions, as stated in the company's 2023 CDP Water response. Looking ahead, the company anticipates a 48% increase in water-related CAPEX, having already increased by 30% in FY2022. Specific projects include the Mount Crawford Reclaim unit and a new wastewater treatment plant in North Africa, with a total CAPEX of €4.3 million in 2022. Half of the water-related CAPEX was allocated to upgrading facilities to meet the company's Clean Water Standards. The company reported a 7% increase in OPEX related to water activities in FY2022 due to the initiation of several reclaim systems and their operational costs. For instance, a reclaim unit at the Wevelgem plant operates under a "Water As A Service" model, resulting in higher costs. A further 5% increase in OPEX is anticipated for 2023. Water-related quantitative information and key performance indicators have been externally verified by Mazars Group. The company also submitted a response to the 2023 CDP Water Security questionnaire. Between FY2022 and FY2023, the total volume of water withdrawn decreased by 8.818% from 66,883,000 m³ to 60,985,000 m³, while water consumption decreased by 11.855% from 37,376,000 m³ to 32,945,000 m³.

In its 2020 Water Policy, the company outlines its approach to combating water scarcity through regenerative agriculture with third-party suppliers. It shares methods and requires suppliers to implement water-positive practices within their value chains. In 2022, the company released an Environmental Handbook addressing regenerative agriculture, covering livestock and feed crop farming, and the indicators used to engage farmers on water scarcity. In its 2023 CDP Water response, the company mandates suppliers to set and monitor water withdrawal reduction targets, but these are not part of supplier contracts, with compliance assessments still in the pilot phase. The company has developed the Regenerative Agriculture Scorecard, an internal policy incentivising farmers to improve water usage through methods such as irrigation scheduling and drip irrigation. Projects to reduce water intensity are underway in France, the USA, Mexico, Morocco, and South Africa. Pilot projects introducing alternative feed solutions for smallholder farmers are planned for 2023. The company supports farmers via its Ecosystem Fund and Livelihoods Fund for Family Farming, providing financial incentives to develop resilient agricultural models. Farmers are selected for programmes based on their exposure to water-related risks, with a focus on addressing water scarcity and drought. As part of its regenerative agriculture initiative, the company established the Farming for Generations global alliance in 2019, bringing together agricultural entities and advisory partners to discuss soil health, biodiversity, and water conservation.

The company reports that none of its dairy ingredient volume is sourced from areas with high average water stress. However, dairy ingredients are excluded from this assessment as feed ingredients. The company is investing in regenerative agriculture within its feed crop supply chains to enhance agricultural resilience. It interacts directly with farmers in its supply chain to promote and offer training on practices that improve water retention, soil biodiversity, watershed protection, and water stewardship. The company engages with suppliers on regenerative practices for 19% of its volume, accounting for 29% of its spend. The company does not disclose specific data on feed water intensity.

In its 2023 CDP Water response, the company reported that approximately 2.73% of the purchased fresh milk volume originated from regions with high average water stress in FY2022, while no dairy ingredient volume was sourced from such areas. However, the company provides unclear disclosure regarding the assessment scope and inclusion of smallholder farms in its 2020 water policy, which previously indicated that 34% of milk farms were in high water stress areas. The company has set water targets within its milk supply chain and initiated regenerative agriculture programmes, collaborating with its 58,000 direct milk suppliers to develop water-smart solutions, conservation targets, and incentives for sustainable farming models that are competitive and resilient. Suppliers are encouraged, though not contractually required, to set and monitor water withdrawal reduction targets, with ongoing compliance assessments being piloted. The company works towards a transition to regenerative agriculture with suppliers, offering training and technical support to foster water-efficient systems and improve productivity and water quality. It engages with suppliers on regenerative agriculture for 19% of its volume, representing 29% of its spend. Since 2019, through the Farming for Generations (F4G) alliance, it identified 75 best practices adopted by 2,600 farms. The company updated its Regenerative Agriculture Handbook and Scorecard in 2022 to provide specific guidance and financial incentives through its social innovation platforms, focusing on farmers at risk of water scarcity and drought.

The company has partnered with third-party organisations like WWF and The Nature Conservancy to enhance its water use strategy in sourcing and farming. These collaborations focus on understanding water scarcity's impact on the value chain and sharing knowledge for effective collective action. Working with WWF, the company developed a regenerative agricultural scorecard that includes water usage assessment. Additionally, through the Sustainable Dairy Partnership, the company collaborates with other dairy companies to improve sustainability in water management practices. A digital solution created with Transparency-One supports the company in collecting water management data from suppliers and third parties in agricultural basins, assisting in implementing action plans for irrigation management and water consumption.

The company disclosed that it paid fines for exceeding discharge limits at municipal treatment facilities in Mexico and Belgium. The company assesses water risk across its supply chain using the Aqueduct water risk tool from the World Resources Institute, focusing on water stress to prioritise ingredients and regions for further investigation and initiatives. In 2023, it reported that half of its production sites are in areas with high or extreme water risk but has not disclosed specific locations of water stress concerning quality. The company has developed its Clean Water Standards, which consider COD (Chemical Oxygen Demand), BOD5 (Biochemical Oxygen Demand), Total Nitrogen, Total Suspended Solids, and Total Phosphorus. Sites in high-risk areas are required to reduce water ratios, reclaim water, and achieve internal water KPIs by 2030. Discharge quality limits are set for Total Nitrogen (>25 mg/L), Total Phosphorus (2 mg/L), COD (120 mg/L), BOD (40 mg/L), and TSS (50 mg/L), with only COD and TP meeting World Bank standards. The company has not explicitly set a target to reduce wastewater discharge volume but aims to reduce water use during operations, ensuring discharged water meets its internal standards.

In 2023, the company reported releasing 4.26 thousand metric tons of chemical oxygen demand (COD) in its wastewater, with a ratio of 0.13 kg per metric ton of product. This data is externally verified by Mazars Group. The company completed and submitted the latest CDP Water Security Questionnaire but has not disclosed the volume of wastewater discharged for the year.

The company collects waste oils and fats from milk production processes and discharges them to an external digester to produce renewable biogas. It reports a slight decrease in Chemical Oxygen Demand (COD) levels from 4.27 thousand metric tons in 2022 to 4.26 thousand metric tons in 2023, a reduction of 0.23%. However, the COD ratio per ton of product increased from 0.12 kg/metric ton to 0.13 kg/metric ton in 2023. The company has not provided details on any decrease in the total volume of wastewater discharged compared to the previous reporting period.

The company engages with crop and livestock farmers on soil health and water quality as part of its regenerative agriculture strategy. It offers a framework for suppliers to adopt practices that enhance soil health and nutrient management, including forage management on dairy farms. The company provides a supplier 'toolbox' to improve nutrient cycle management, feed autonomy, feed efficiency, and soil health, with a focus on dairy. However, it does not require exclusive procurement of feed from suppliers with an established nutrient management plan. Additionally, it has not disclosed any partnerships with third parties to support its sourcing and farming strategy, particularly concerning nutrient pollution and fertiliser usage.

The company acknowledges the risk to ecosystems and biodiversity from excessive use of chemical fertilisers and pesticides and has introduced regenerative agriculture practices to reduce chemical pesticide use. However, it has not provided details on pesticide usage in its feed supply chains. The company is investing in regenerative agriculture within its milk supply chain to reduce emissions, support biodiversity, enhance soil health, and improve water management. For instance, a project in the USA demonstrated reduced tillage and chemical pesticide use while incorporating cover crops.

As of 2023, the Flora project covers 14,000 hectares employing regenerative agriculture practices, such as manure management. The company reports that 34% of its milk farms are in areas of high water stress and 2.73% of its milk volume is sourced from these areas. However, it is unclear if this assessment considers water quality and pollution risks.

The company, alongside other dairy members of the Sustainable Agriculture Initiative Platform and Dairy Sustainability Framework, has established sustainability criteria for its suppliers. These suppliers must implement sustainability management systems for their tier 1 farms, covering aspects such as soil nutrients, waste, water, soil, and biodiversity. However, it is unclear if these criteria explicitly require nutrient management plans. The company has developed a digital tool for the annual collection of water management data from its suppliers and third parties in agricultural areas. This data aids in creating action plans for topics like irrigation management, water consumption, and fertiliser use. Additionally, the company has a regenerative agricultural framework that offers technical guidance on nutrient management, specifically targeting dairy cattle to address water scarcity risks and improve soil health.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company has implemented a comprehensive antibiotics policy promoting responsible use, specifically avoiding prophylactic and routine metaphylactic applications. Antibiotics are restricted to medically critical situations and are not routinely used for farm animals in Europe. Growth promoters are strictly prohibited across all livestock supply chains. In collaboration with suppliers, the company aims to reduce antibiotic use by adopting alternatives such as lower density, vaccination, and herbal treatments. As of 2020/2022, no routine antibiotics were used for 100% of chickens, with a global target to eliminate routine antibiotic use across all livestock supply chains by 2026. The company employs measures to improve animal welfare and reduce the need for antibiotics, including biosecurity, vaccination programmes, herbal treatments, reduced stocking density, and elimination of routine mutilation. These strategies form part of a broader animal welfare improvement plan, incorporating regular audits, farmer training, and pilot projects to enhance animal health and welfare, ultimately reducing antibiotic use.

The company records antibiotic usage data but does not publicly disclose this in industry-standard units such as mg/kg, nor does it categorise quantities by type or class. It reports a focus on the reduction and responsible use of antibiotics, achieving 100% compliance with no use for growth promotion in cattle. However, it does not disclose the quantities used or any reduction in the percentage of animals treated or the quantity per ton of product compared to the previous period for dairy cattle. Additionally, there is no explicit disclosure of third-party audits of its antibiotic usage data.

The company emphasises animal welfare by supporting the Five Freedoms across all species and regions, ensuring farming practices meet animals' needs, such as proper housing, regular food and water access, and responsible antibiotic use. It conducts regular audits and offers training to uphold high animal welfare standards. The company is committed to training employees and farmers on animal welfare through comprehensive programmes, including technical workshops, online and offline sessions, and collaborations with partners. In cases of non-compliance with its animal welfare policy, corrective action plans are required, and farms undergoing two failed re-assessments face milk collection suspension. Through comprehensive research and development initiatives, the company demonstrates leadership in animal welfare. It collaborates with partners, including NGOs, universities, and agricultural technicians, to promote best agricultural practices and disseminate knowledge globally. Notable projects include the Farming for Generations (F4G) alliance and its successor, Partners for Growth (P4G), focusing on holistic improvements in dairy farming.

The company is committed to avoiding close confinement for all farm animals, promoting housing systems such as free stall barns, group housing, yards, or pens. It plans to phase out high stocking densities and permanent tethering systems entirely by 2030, though gestation crates are still used for sows for up to 28 days per gestation. The company has eradicated routine mutilation practices like fish fin clipping, beak trimming, pig castration, and the dehorning and tail docking of dairy and beef cattle. It aims to eliminate pig tail docking and teeth grinding by 2030, although disbudding of calves continues when deemed unavoidable, employing humane techniques and best practices with appropriate pain management. The company limits live animal transport times to a maximum of 4 hours for poultry and rabbits and 8 hours for other species. It ensures all animals are adequately stunned before slaughter, using species-specific methods such as controlled atmospheric stunning for poultry and electrical or CO2 stunning for pigs. However, the company does not disclose information about enriched environments for dairy cattle. It aims to cease the use of high-performance broiler and turkey breeds by 2026, but lacks a similar commitment for dairy or beef cattle.

The company's operations are certified by AENOR for animal welfare, adhering to the European Welfare Quality® framework. This certification ensures high standards covering feeding, housing, health, and behaviour. In its dairy operations, 91% of the fresh milk volume is assessed using the company's animal welfare audit, supported by the AENOR certification received in 2019.

The company reports improvements in dairy cattle welfare, with 96% of dairy cows free from tail docking in 2022, up from 94% in 2021. Additionally, 99% were free from dehorning, compared to 98% the previous year. The company assessed 91% of its fresh milk volume through animal welfare audits, conducting over 3,000 farm audits with an average score of 70 points in 2023.

The company is committed to eliminating permanent tethering systems, including cages, stalls, and crates, for all farm animals by 2030. It monitors lameness in its dairy cows, reporting rates of 6.7% in 2021 and 6.3% in 2022. However, the company does not disclose mastitis incidence or provide information on suitable environments.

The company has a dedicated human rights policy that commits to respecting all internationally recognised human rights, as outlined by the UN and ILO. This policy applies to the company's operations and direct suppliers, detailing the procedures for its implementation.

In 2022, the company completed a thorough human rights impact assessment of its operations and supply chain, started in 2021 with guidance from Shift, an external expert. This evaluation identified on-site external workers as a primary focus for human rights due diligence. Consequently, the company developed a Human Rights Due Diligence (HRDD) roadmap, prioritising sites according to the number of external workers and country-specific risks. It has committed to implementing HRDD systems to address forced labour across all operations by 2025. The company employs a RESPECT programme to oversee labour standards and sustainability among its Tier 1 suppliers. This includes Sedex self-assessment scorecards, prioritisation, and third-party audits of high-risk suppliers. It also maintains regular dialogue with suppliers, monitoring corrective measures identified through audits. Additionally, pilot HRDD roadmaps were initiated in 2022, resulting in the establishment of a central governance system for human rights expertise. The company's strategies for mitigating human rights risks within its supply chain and operations are clearly outlined. Supplier risk mitigation involves social scorecards, resource provision, and continual engagement to improve human rights adherence. Within its operations, human rights training reached 5,750 employees by the end of 2022. The company also participates in various coalitions and workstreams on responsible sourcing, including AIM-Progress, the Human Rights Coalition in CGF, the Forest Positive Coalition in CGF, and workstreams on human rights, living wage, and inclusive sourcing within B4IG. However, specific actions for addressing identified human rights risks or non-compliance within its operations remain unclear.

From its SMETA supply chain audits, the company identified 452 critical non-conformities in 2023, with 65.9% related to health and safety. Forced labour, child labour, and discrimination accounted for 1.3%, 0.7%, and 1.1% respectively. The company reported specific cases, such as three instances where young workers faced hazardous tasks, excessive working hours, or were employed without age verification. It asserts that all critical non-conformities have been resolved or are being addressed. This includes resolving three out of six forced labour risks by reimbursing workers for recruitment costs and monitoring the remaining cases.

The company prohibits forced labour, child labour, discrimination, and harassment. It reports that 82.5% of its sales are B-corporation certified, which requires paying a living wage. The company aims to attain 100% coverage with Human Rights Due Diligence (HRDD) systems addressing forced labour by 2025, including temporary and subcontracted workers. Additionally, it plans for all sites to achieve B-Corporation certification by 2025. However, the auditing of policies concerning discrimination, harassment, and child labour remains unclear. The company requires its suppliers to prohibit abuse, discrimination, forced labour, and child labour, but it does not mandate that suppliers pay a living wage. Furthermore, the company does not disclose policies regarding the provision of sick pay to all employees.

The company conducts SMETA audits in its supply chain, covering relevant policies. However, only 514 of its 3,511 suppliers registered on Sedex or Ecovadis platforms have undergone such audits. The company has a whistleblowing channel for both internal and external stakeholders. This reporting process, developed with employee representatives, is accessible via the Internet or phone in 56 languages, allowing anonymity. Awareness is promoted through posters and an annual communication campaign. The whistleblowing channel received 902 reports, with 388 concerning human rights. The number of reports relating to health and safety is not disclosed.

The company prioritises employee safety and well-being through its WISE programme, which aims to reduce workplace accidents by promoting a health and safety culture across all sites and enforcing standards for critical risks. However, the programme lacks certification. Oversight of the WISE programme is conducted at the Group level by the Safety Steering Committee, chaired by the Chief Operations Officer and Chief Human Resources Officer, both Executive Committee members. The company has not disclosed whether it has assessed or addressed the risk of antimicrobial resistance for its workforce.

In 2023, the company reported a decline in its lost-time frequency rate (FR1) from 1.1% to 0.9%, and in accidents without medical leave (FR2) from 0.68% to 0.56%, compared to 2022. However, the number of fatal accidents within its direct operations rose from one in 2022 to three in 2023. Additionally, the company reports an overall employee turnover rate of 19% in 2023, though this figure is not disaggregated by seniority level.

The company pledges to uphold labour rights, including freedom of association, but does not disclose its unionisation rate. It collaborates with trade unions such as the International Union of Food Workers (IUF), with meetings held bi-annually to monitor compliance with agreements. Union representatives are included in the steering committee for its information and consultation committee. Additionally, joint assessments of working conditions and social dialogue quality in company subsidiaries are conducted regularly, with 17 assessments between 2019 and 2023, including five in 2023. Suppliers are required to respect their employees' rights to freedom of association and collective bargaining.

In 2023, the company reported that 72% of its employees were under collective bargaining agreements, and 4% were part-time. However, it does not differentiate its workforce by other contract types, such as permanent versus temporary, nor disclose the number of subcontracted workers used during the reporting year.

The company has implemented a comprehensive food safety management system aligned with GFSI-recognised standards, including FSSC 22000, covering its entire value chain. As of 2023, 96% of its entities and production sites are certified under this standard. The company requires its suppliers to be certified, or in the process of certification, by an independent body according to a GFSI-recognised system or equivalent, indicating that a significant proportion of its suppliers adhere to these high standards.

The company provides detailed disclosure on the number and frequency of food safety audits, with 152 FSSC 22000 certification audits by independent bodies and 67 internal audits by the Global Food Safety Audit team conducted in 2023. However, it does not disclose rates of corrective actions for non-conformances at its facilities or its progress on developing consumer-facing technology for food safety.

The company recognises product recalls as a material business risk due to potential food safety and quality issues. It emphasises the need for stringent quality management systems to prevent and manage risks related to product contamination and safety. However, the company does not provide specific data on the number of recalls or incidences.

In February 2023, the company issued a voluntary recall of 240 cases of YoCrunch Vanilla Lowfat Yogurt with M&Ms due to undeclared wheat, posing a risk to consumers with wheat allergies. This recall, identified as Event ID 91766, affected products distributed in Ohio, Pennsylvania, Kentucky, North Carolina, and South Carolina. The company discusses food safety and product quality risks but does not provide specific information on any market bans.

The board and its CSR committee oversee the company's sustainability goals, roadmap, action plans, and progress. In 2021, the company conducted a materiality assessment to identify significant issues for the next five to ten years and verified in 2022 that the top 13 sustainability risks remain relevant. It is currently finalising a double materiality assessment aligned with the EU Corporate Sustainability Reporting Directive (CSRD), with the audit committee set to monitor its progress in 2024. The company includes a board member, Lise Kingo, with a sustainability background. Additionally, Isabelle Esser from the executive committee has expertise in food safety, and two board members have innovation expertise.

The company has established executive financial incentives linked to climate-related and sustainability indices, with 20% of annual and 30% of long-term variable compensation based on sustainability criteria. The company partners with policymakers and civil society organisations, notably collaborating with the Global Methane Hub, Environmental Defense Fund, Ramsar, World Wildlife Fund, the COP28 Action Agenda on Regenerative Landscapes, Ellen MacArthur Foundation, and the United Nations Food and Agriculture Organization. The company engages in policy through various platforms, including Food Drink Europe, the Global Dairy Platform, B4IG, and UNESDA. It commits to conducting advocacy activities aligned with the Paris Agreement, aiming to limit global temperature rise to 1.5°C.

The company aims to develop regenerative agriculture models to enhance soil health and ensure animal welfare on farms. It has led initiatives such as One Planet Business for Biodiversity (OP2B), Sustainable Agriculture Initiative (SAI), and Farming for Generations to promote regenerative agriculture across the industry. The company also discloses a global Research and Innovation centre, along with six specialised centres focusing on packaging and plant-based foods. Furthermore, it recognises its strong performance in sustainability benchmarks like WBA, BBFAW, and S&P Global Ratings.

In its 2023 CDP Climate response, the company details its One Planet One Health vision, correlating people's and the planet's health. To address environmental concerns, it is investing in alternative proteins to aid the shift toward flexitarian diets, combating transition and reputational risk. The company acknowledges plant-based diets' potential to mitigate climate change, as noted by the IPCC, and highlights developing plant-based products as a strategy to reduce its carbon footprint and achieve its FLAG targets. The company’s 2023 Annual Report reveals that 52% of its revenue is from the Essential Dairy and Plant-Based (EDP) products sector, although it does not break down sales by specific products. Its CDP Climate response indicates that plant-based products accounted for 23% of total EDP sales volumes in FY2022, with low-carbon products—including plant-based ones—making up 8.4% of total revenue. It has set a target to ensure that by 2025, 25% of EDP product volumes come from plant-based products, with current figures at 23% in FY2023.

The company operates two established plant-based protein brands: Alpro in Europe and Silk in North America. These brands offer a diverse range of alternative dairy products, such as milk, yoghurt, cheese, and ice cream. In the US, the company also provides dairy-free brands So Delicious and Follow Your Heart. To enhance its plant-based portfolio, the company acquired WhiteWave (provider of Alpro) in 2017 and Earth Island (maker of Follow Your Heart) in 2021. In April 2023, it announced a $2 million strategic investment in Wilk, a startup specialising in cell-based breast milk, and took a minority stake in Imagindairy, a precision fermentation firm, to expand its alternative milk investments. In February 2023, the company opened the Daniel Carasso Research & Innovation Center in Paris-Saclay to advance research in nutrition with a focus on fresh dairy and plant-based products. The centre's research covers five primary areas, including science and technology, where the company explores microbiota, fermentation, and animal and plant proteins.