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Danone 2014 First-Quarter Sales have been published on April 16th, press release available on our website.

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French Business students rank Danone as the 8th most attractive employer in the 2014 Universum survey. Discover now our different jobs!

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World Water Day 2014 on Water and Energy: how evian contributes [...]

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The last issue of our Letter to our Shareholders is online, find here new information for shareholders

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CO-INVENT TO INNOVATE: EXPLORING NEW MODELS TO TRANSFORM OUR PRACTICES

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Version : 47

A sustainable food chain

As early as 1972, Antoine Riboud was drawing attention to the environmental impacts of businesses on the planet: little by little they alter its balance.

A visionary stance : Today, environmental issues remain at the heart of Danone’s mission

Antoine
Riboud

  • 1REDUCE
    CARBON
    MISSIONS
  • 2THE
    GROUND WATER
    POLICY
  • 3GIVE PRIORITY
    TO SUSTAINABLE
    MATERIALS
  • 4A
    SUSTAINABLE
    AGRICULTURE

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Environmental issues

The difficulty lies in reconciling the challenges associated with guaranteeing food security and preserving natural resources and cycles, whilst taking into account the diverse needs and circumstances of each country.


POPULATION SIZE, CHANGES IN EATING HABITS, AND PRESSURE ON NATURAL RESOURCES

Both the world population and the demand for food are growing significantly. By 2050, food production will have to increase by 70% to keep up with the needs of 9 billion human beings and changes in the consumption habits of the new developing economies. The pressure on natural resources will increase proportionally.

  • 7 billionsToday
  • 9 billions2050

World population


WORSENING IMPACTS
  • • Pollution and loss of soils
  • • Pollution of streams and groundwater
  • • Greenhouse gas emissions
  • • Rising waste production
  • • Loss of biodiversity
A NECESSARY REINVENTION OF AGRICULTURE
While agriculture is vital to mankind, it is also responsible for:
  • 25% of greenhouse gas emissions
  • 70% of water consumption
  • 40% of groundwater pollution
  • 25% of greenhouse
    gas emissions
  • 70% of water
    consumption
  • 40% of groundwater
    pollution

Agricultural production is threatened by the erosion of biodiversity, which is forecasted to decrease by a further 25% by 2050


THE ROLE OF THE AGRI-FOOD INDUSTRY

Agri-food companies can and must play a role in protecting ecosystems. As it continues to cater to the needs of an ever-increasing consumer base, Danone strives to limit the impact of its activities on the environment, all through the product life-cycle, including when manufacturing and distributing its products.

1Reduce carbon emissions

Claudio

Industrial Performance
engineer

Recently, CLAUDIO,an employee at Brazil’s Poços de Caldas plant, decided to buy cleaner energy, 97% of which comes from renewable energy sources.

Each employee contributes to reducing carbon emissions.

Danone had set itself the ambitious goal of reducing its carbon footprint by 30% over the 2008-2012 period.
Today, that goal has been exceeded: -35.2%!

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Carbon

REDUCING CARBON EMISSIONS TO COMBAT CLIMATE CHANGE

In 2012, the Group achieved a 35.2% reduction across all areas under its direct responsibility (manufacturing sites, packaging and end of life, transport and storage – excluding upstream agriculture). What’s more, since 2007 the Group’s sales volumes have experienced a sustained increase of over 35%, whereas its carbon emissions have remained stable overall during that same period.

EXPERIMENTING WITH RENEWABLE ENERGY SOURCES

In the Poços de Caldas factory in Brazil, a biomass boiler was installed in August 2011, to replace the fuel oil used for heat production. This project relies on the use of biomass, which is both renewable and available in large quantities. It uses only natural “wood energy” resources that are certified as sustainable and should prevent emission of 18,000 tons of CO2 each year. Thanks to this use of biomass, the thermal energy used by the plant is 97% from renewable sources.

A similar project was introduced in 2012 on the Wexford production site in Ireland. 3.8 million euros were invested in a biomass boiler system. The positive effects of this :

  • savings of 9,500 de CO2 par an.
  • annual fossil fuel bill reduced by €750,000 per year.
  • • the development of a local FSC (Forest Stewardship Council) certified wood industry and the creation of 65 indirect jobs in the upstream segment.

THE PERFORMANCE OF THE EVIAN BRAND and THE LIVELIHOODS FUND

In 2011

Danone created the Livelihoods Fund, with the involvement of other companies. This fund invests in major natural ecosystem restoration projects. These projects contribute to combating climate change through the sequestration of large volumes of carbon. The goal? Between 8 and 10 million tons of carbon stored over 20 years, for a minimum investment of 35 million euros.

Over the 2008-2012 period

Evian reduced its carbon intensity by 40%.

In 2012

The brand offset its remaining emissions by supporting several high-quality projects recognised by the Verified Carbon Standard and the Gold Standard.

Since 2013

Evian has been refocusing its efforts on supporting the Carbon Fund to achieve full emissions offset by 2020.

2The ground water policy

Some time ago, MATEUSZ stopped leaving the water running while cleaning the production machines...

Danone employees reduced their water consumption by 3.1% in 2012, bringing the overall reduction since 2000 to 43.1%.

Mateusz

Operator of a bottling line
at the Jelesnia plant

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Water management

THE "GROUND WATER POLICY"

With the collaboration of local stakeholders, this Danone policy encourages better management of the Water resource through :

  • respecting nature’s cycles (by not removing more water than nature is able to replenish)
  • protecting the rainwater catchment areas (impluvia) of the natural mineral water sources, as well as their related ecosystems.

For this, a tool called SPRING (Sustainable Protection and Resources managing) has been deployed across 100% of the Waters division’s sites since 2008. It was developed in partnership with the RAMSAR (United Nations Convention on Wetlands of International Importance) and the UICN (International Union for the Conservation of Nature).

MEASURING TO IMPROVE EVEN FURTHER

In 2012, Danone continued its water footprint measurement research, conducted with its partner Quantis and also contributed to the development of international (ISO) and European standards (Envifood protocol). This approach led to the development of the Water Scarcity Footprint, a water footprint evaluation methodology which takes water stress factors into account.

This tool will help to identify at-risk zones and ways to reduce the Group's impact across its entire value chain.


3Give priority to sustainable materials

Frédéric is persistent: with his teams, if he decides he wants a new generation material... they will fine one together

Reducing the weight of packaging and opting for recycled or bio-sourced materials... an approach which mobilises all the Group’s employees

Frédéric

Danone Research R&D Packaging Center Director

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Packaging

EXPERIMENTING WITH RENEWABLE MATERIALS

For several years now, the Group has been developing plant-based plastics (made from sugar cane, sugar cane waste and corn) used by 4 brands (Volvic, Actimel, Activia and Stonyfield) in 7 countries. .


TOWARDS THE NEW GENERATIONS OF BIO-SOURCED MATERIALS

Through its vast experience, Danone has acquired a great deal of expertise in the various parameters involved when developing new packaging :

  • • environmental implications (life cycle assessment)
  • • compliance with sustainability criteria (competition with food, end of life, etc.)
  • • associated business issues
  • • consumer perceptions.

This knowledge must contribute to encouraging the emergence of new generation bio-sourced materials : materials that are not in direct competition with food..


PACKAGING AND SUSTAINABLE FOREST MANAGEMENT

Conscious of the major importance of forest preservation, Danone aims to eliminate the impacts of deforestation linked to its manufacturing and supply chain, and develop a reforestation programme by 2020.

Find out more about Forest Footprint

DEVELOPING RECYCLING

Danone contributes to collecting the materials used in the packaging of its products and, where this activity is not organised, the Group experiments with new collection systems. 4 projects are underway within the framework of the Danone Ecosystem Fund, including a new project in Brazil.

Danone is also increasing its use of recycled packaging. In 2011, more than one third of packaging was made from recycled materials (73% of cardboard and 10% of PET). The long-term goal is to use 25% recycled PET on average.

4A sustainable agriculture

Petula has made a lot of changes on her farm: she now draws inspiration from the best practices from around the world...

Natural resources are in limited supply and to protect these natural assets we must use new farming methods that enable us to both meet food requirements and preserve the natural cycles of soil, water, the climate and biodiversity.

Petula

Farmer

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A sustainable agriculture

ROLL-OUTING BEST PRACTICES

In 2012, Danone created a work group on sustainable agriculture to establish a new strategy.

The goal is to create momentum for developing sustainable agricultural practices :

  • • whilst taking into account 4 key aspects, namely health, economy, nature and social..
  • in close collaboration with producers and stakeholders in the dairy sector.

The project was implemented in 6 pilot countries in 2013, covering all models of dairy production.


ANIMAL WELFARE

A programme initiated by the Fresh Dairy Products division in 2012 and developed with the help of scientists, livestock farmers and NGOs, comprises all the best practices to be applied at the farm level, to ensure animal well-being.

This programme is based on three priorities:

  • strengthen farmers’ awareness of animal well-being by providing them with the necessary information and tools;
  • reward good animal well-being practices Farmers who make progress in the area of animal well-being will be recognized by Danone in a variety of ways (a label, a prize, etc.);
  • ensure a high level of animal well-being while improving milk production. Danone intends to draft action plans, in collaboration with livestock specialists.

In the next thirty years, there will be two billion more humans on our planet. One of the greatest challenges of our time is to manage the rapidly increasing demand for food with limited natural resources. Arable land, the climate, water, and biodiversity will become ever more precious in order to guarantee a future for the next generations. This is why we need to learn to produce more and better with less, starting right now.

EMMANUEL FABER,
Deputy General Manager