Meeting on December 11, Danone’s Board of Directors chaired by Franck Riboud reviewed the company’s situation and prospects.
Euronext, the leading exchange in the Eurozone, today congratulated Danone on the success of its dual-tranche €1.3 billion bond issue.
The Economist Intelligence Unit published a report about best practices within which business are incorporating responsibilities into their operations.
The last issue of our Letter to our Shareholders is online, find here new information for shareholdersREAD MORE
To answer many consumers’ desire for a protein snack with a stronger nutritional profile, Dannon has created a first-of-its-kind yogurt – new Triple Zero.
+6.9% organic growth in the third quarter. Solid underlying trends across all businesses. Full-year targets for 2014 confirmed.
Danone announces plan to close plants in Casale Cremasco (Italy), Hagenow (Germany) and Budapest (Hungary)READ MORE
The Danone Nations Cup ended up with the victory of the Japan Team yesterday after a great game against Paraguay!
The #Danone Ecosystem Fund project "Novo Ciclo" develops innovative waste-picker cooperatives in Brazil http://t.co/4geprUpEX1
Il y a 19 heures
Last Friday, Pierre-André Térisse, #Danone's Chief Financial Officer, rang the b...
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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
FOR DANONE, HEALTHY FOOD BEGINS WITH
Danone adopted an Environmental Charter in 1996 and defined a ten-year plan and objectives in 2000. The group boosted its efforts in 2008 by setting the goal of reducing the greenhouse gas emissions in its direct scope of responsibility by 30% in five years, a goal that was surpassed at the end of 2012.
Danone has today identified four key focus areas for their engagements looking ahead to 2020: climate, water, packaging and agriculture.
- 1Fight climate
- 2Protect water
Find out more about 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 billion Today
- 9 billion 2050
- • pollution and loss of soils
- • pollution of streams and groundwater
- • deforestation
- • greenhouse gas emissions
- • rising waste production
- • loss of biodiversity
THE ROLE OF FOOD COMPANIES
The global economy is transitioning from a period of abundance to a period of resource scarcity, which will ultimately drive up costs.
These major environmental and food security challenges are core concerns for Danone. Preserving our resources and sustainably managing strategic raw materials (in particular water and milk) are the foundation of the company’s sustainable model within its ecosystem.
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
70% of water
40% of groundwater
Agricultural production is threatened by the erosion of biodiversity, which is forecasted to decrease by a further 25% by 2050.
Agriculture thus needs to reinvent itself to rise to these challenges. More must be produced with fewer inputs on a smaller cultivated area, while also significantly improving the impacts of agricultural practices on climate, water, biodiversity and soil.
ECOSYSTEMS UNDER THREAT
The climate change affects our planet and weakens ecosystems, which humans depend on. Livestock farming is responsible for 18% of greenhouse gases emissions and deforestation is responsible for 20%.
Forest protection and restoration are critical issues. Pollution of water resources is speeding up the disappearance of natural water-based ecosystems, particularly in wetlands and forests.
18% from livestock
greenhouse gases emissions
1 Fight climate change
Recently, Lucas, an employee at Brazil’s Poços de Caldas plant, decided to buy cleaner energy, 97% of which comes from renewable energy sources.
DANONE’S GOAL IS TO ACHIEVE A GREATER THAN 50% REDUCTION OF IT’S CARBONE FOOTPRINT BY 2020, TO STABILIZE CO² EMISSIONS WHILE CONTINUING SALES GROWTH (since 2007 and on Danone’s direct responsability : Fullscope excluding upstream agriculture).
Find out more about the fight against climate change
Fight climate change
Danone measures the carbon footprint of its entire product life cycle in every group subsidiary. In 2008, Danone began developing and deploying a single measurement tool in all its subsidiaries: Danprint (an innovative solution co-developed with software editor SAP).
After reducing its emissions by 37.4% since 2007 and successfully “uncoupling” its carbon emissions from volume growth (CO² emissions nearly stable in absolute value since 2007), Danone’s current goal is to achieve a greater than 50% reduction by 2020, and to stabilize CO² emissions while continuing sales growth.
Danone created the Livelihoods Fund. Today, 9 other companies have joined. This fund invests in major natural ecosystem restoration projects. These projects contribute to combating climate change by sequestering large volumes of carbon and improving the well-being of local populations.
The goal: 7 million metric tons of carbon over 20 years for a minimum investment of €30 million. Livelihoods has already contributed to planting more than 100 million trees in Africa, Asia and Latin America.
tons of carbon
Over the 2008-2012 period
Evian reduced its carbon intensity by 40%.
Evian decided to refocus its efforts on the Livelihoods Fund, whose projects have been supported by the brand since 2008, by strengthening its participation over the long term. The expansion of these projects will progressively offset the Evian brand’s emissions, to achieve full emissions offset by 2020.
Conscious of the critical importance of preserving forests for the planet and the need for concerted action with all parties involved, Danone committed to this cause with a dedicated policy to eliminate deforestation practices in its supply chain.
THE GROUP IS SUPPORTING THE USE OF RENEWABLE ENERGIES
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 the use of biomass, the thermal energy used by the plant is 97% from renewable sources.
A similar project was launched 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 certified wood industry and the creation of 65 indirect jobs in the upstream segment.
Another notable initiative: Danone has committed in the framework of the Consumer Goods Forum to buying only refrigerators with natural refrigerants for its own fleet in our sales points.
2 Protect water ressources
Some time ago, Mateusz stopped leaving the water running while cleaning the production machines...
DANONE EMPLOYEES REDUCED THEIR WATER CONSUMPTION BY 5% IN 2013, AND DOWN BY 46% SINCE 2000.
operator od bottling
line at the jelesnia plant
Find out more about the protection of water ressources
Protect water ressources
Water is a precious and sometimes scarce resource that must be used in harmony with local ecosystems and communities. Danone is therefore committed to preserving the quality of this indispensable resource and to respecting its natural cycles by adopting responsible practices at the local level.
MEASURE FOOTPRINT IN A “WATER CYCLE” APPROACH
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.
PROTECT THE RAINWATER CATCHMENT AREAS AND RESPECTING NATURE’S CYCLES
For this, 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).
REDUCE CONSUMPTION AND WASTE
In 2013, the water consumption intensity related to the production process reduced by 5% and down by 46% since 2000. The group is setting a new reduction goal of 60% by 2020, and also strains to ensure that used water returned to nature is of adequate quality for downstream ecosystems and users, by implementing strict corporate standards (defined in the Danone Clean Water Guidelines).
To preserve its natural source of mineral water, Danone therefore seeks to protect and restore the ecosystems connected to water in the regions where the group operates.
For example, the Villavicencio brand protects a nature reserve of 72,000 hectares (178,000 acres) and its rich biodiversity. It went on from this experience to pursue an innovative partnership with the NGO Banco de Bosques and implement the “Dejá tu Huella” (“Leave your mark”) operation. This initiative allows consumers to participate in creating a new nature reserve.
3 Transform waste into a resource
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.
danone research r&d
packaging center director
Find out more about the transformation of waste into a ressource
TRANSFORM WASTE INTO A RESOURCE
AT THE SOURCE
This is a number-one priority wherever possible. Danone must optimize the weight of packaging across the board, while maintaining product quality and the service provided to consumers. Several technical innovations have been introduced with this in mind, such as removing the cardboard from yogurts sold in multi-packs and reducing the weight of bottles.
TURN WASTE INTO
After consumption, packaging can be turned back into a useful resource. Danone is working on collection methods to prevent its packaging waste from ending up in landfills, and aims to develop a circular approach based on three priorities:
- • support innovation in packaging materials and design to make recycling easier;
- • use more recycled materials : today, a quarter of Danone’s packaging is produced from recycled materials. Despite the challenges involved in expanding PET bottle-to-bottle recycling industry, the goal is to achieve a rate of 25% of recycled PET by 2020;
- • develop and scale up with others collection systems around the world.
Between now and 2020, Danone will support innovative and socially inclusive initiatives for transforming waste into resources in at least ten priority target countries where it is most needed.
PACKAGING MATERIALS MADE FROM SUSTAINABLE RESOURCES
Conscious of the critical importance of preserving forests, group’s goal is to achieve supply that is 100% sourced from recycled paper and cardboard or from responsibly managed forests by 2020 – and by the end of 2015 in regions with a high deforestation risk.
Danone is also experimenting with plastics produced from biomass (sugar cane, sugar cane waste and corn) and has been developing plant-based plastics used by 4 brands (Volvic, Actimel, Activia and Stonyfield) in 7 countries. More initiatives will come.
These initiatives show that it is possible to develop innovative materials from renewable resources. Danone is a founding member of the Bioplastic Feedstock Alliance (BFA) with the World Wildlife Fund (WWF) to encourage responsible development of bioplastics.
Learn more at :
4 Promote a sustainable agriculture
Petula has made a lot of changes on her farm: she now draws inspiration from the best practices from around the world...
PROMOTE AGRICULTURE THAT PRODUCES A HEALTHY FOOD, IS COMPETITIVE, CREATES ECONOMIC AND SOCIAL VALUE AND RESPECTS NATURAL ECOSYSTEMS.
Find out more about the sustainable agriculture
promote a sustainable agriculture
THAT RESPECT NATURE
Create momentum with local stakeholders supporting a shift towards sustainable agricultural practices, to encourage the development of production models that satisfy food supply needs while also preserving the natural cycles of the soil, climate, water and biodiversity.
As early as 2002, Danone founded SAI (Sustainable Agriculture Initiative) which today unites some 50 actors in the agrifood sector.
In 2012, in partnership with the University of Bern (Switzerland), Danone developed a tool for evaluating farm sustainability that was tested in seven pilot countries in 2013 (in Europe, the Americas and Asia).
A guide to adopting sustainable agriculture for the subsidiaries and their partners around the world has been published, in cooperation with more than 20 international experts in the field.
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.
BIODIVERSITY: PROTECT ECOSYSTEMS CONNECTED TO AGRICULTURE
The impact of Danone’s activities on biodiversity is primarily related to upstream agriculture. Farming practices have a strong impact on soil erosion, fertility, moisture and loss of organic matter, as well as on the habitats that play a key role in protection and reproduction.
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.
PDG since 2014WESTERN EUROPECENTRAL & EASTERN EUROPEASIA - PACIFICFRESH DAIRY PRODUCTSBABY NUTRITIONWATERSSHARE PRICE60.11 €0.07 %