Our journey towards Net-Zero

Driving climate action

The climate crisis highlights the urgency of transforming food systems to address interconnected challenges like biodiversity loss, water scarcity, and the well-being of communities. These challenges also offer opportunities for innovation, collaboration, and adaptation. For years, we have advanced sustainable practices and aligned with a health-focused portfolio, understanding that food systems must evolve to be more inclusive and regenerative. By fostering systemic change and supporting resilient ecosystems, we aim to contribute to a low-carbon future that balances environmental health, societal needs, and long-term food security.

Transforming food systems for climate action and resilience

Food systems contribute around one third of global greenhouse gas emissions and are particularly vulnerable to climate change due to their reliance on natural resources. Transforming food production is crucial not only to address the climate crisis and limit warming to 1.5°C* but also to prevent food insecurity.

At Danone, we are already taking action, from adopting regenerative agricultural practices to reducing emissions across our entire supply chain. These initiatives support our goal to achieve Net-Zero** emissions by 2050, while helping our partners and farmers adapt to the challenges climate change will bring, and building a more resilient food system.

* The 1.5°C goal aims to limit global warming to 1.5°C above pre-industrial levels by the end of the century. According to the UN’s Intergovernmental Panel on Climate Change this threshold could result in significantly more severe and irreversible climate impacts.

** Net-Zero refers to achieving a balance between the amount of greenhouse gases emitted into the atmosphere and the amount removed, with residual emissions reduced as close to zero as possible.

Measuring our greenhouse gas emissions footprint

We measure and report our greenhouse gas (GHG) emissions annually across our entire value chain to monitor our climate impact. Accurate data is essential for tracking progress and setting future reduction targets, so we continuously work to improve data quality. Emissions are calculated using the Greenhouse Gas Protocol methodology and verified by an independent third party under ISAE 3000 standards.

Understanding emissions across our supply chain

To better track and reduce our climate impact, emissions are categorized into three distinct scopes, in line with globally recognized standards from the Greenhouse Gas Protocol

SCOPE 1: Direct emissions from sources owned or controlled by the company, such as emissions from combustion in company-owned facilities and from company-owned vehicles.
SCOPE 2: Indirect emissions from the generation of purchased electricity, steam, heat, or cooling consumed by the company.
SCOPE 3: All other indirect emissions that occur in the company’s value chain. This includes emissions from upstream and downstream activities, such as agriculture, transportation, and the distribution of purchased goods and services. Our main categories include milk, dairy ingredients, plant-based ingredients, packaging, logistics, and co-manufacturing.
What are FLAG emissions?

Forest, Land, and Agriculture (FLAG) emissions are greenhouse gas emissions stemming from agriculture, land-use change, and land management. FLAG is also the name of a sector-specific framework by the Science Based Targets initiative (SBTi), designed to help companies in these sectors measure and reduce their emissions. This framework focuses on critical areas like deforestation, soil health, and sustainable land use.

Committing to climate action: setting our reduction targets

Danone was one of the first 100 companies in 2015 to commit to achieving Net-Zero emissions by 2050, in line with the Paris Agreement. In 2017, our reduction targets aligned with a 2°C trajectory were approved.

We became one of the first consumer goods companies to have carbon reduction targets and FLAG emissions targets in 2022, aligned with a 1.5° C trajectory covering Scopes 1, 2, and 3. We published our Climate Transition Plan in 2023, and in 2024, our 2050 targets were officially approved by SBTi.

We’re committed to achieving the following reduction targets by 2030, compared with our 2020 baseline:

-^46.3%

We’re committed to cutting Scope 1 & 2 emissions by 46.3%

-⁴²%

We’re committed to reducing emissions from Scope 3 non-FLAG (Packaging, Logistics, and Co-manufacturing) by 42%

-^30.3%

We’re also aiming to cut Scope 3 FLAG (Forest, Land, and Agriculture emissions such as those from milk, dairy ingredients, and plant-based ingredients) by 30.3%

Eight programs for tackling emissions

Cutting emissions across our value chain

We’ve launched eight key programs to reduce our greenhouse gas emissions across our entire value chain. These include improving energy efficiency and switching to renewable energy in our operations, helping farmers adopt sustainable practices that reduce emissions, responsibly sourcing ingredients with a focus on deforestation-free supply chains, and transitioning to fully recyclable, reusable, or compostable packaging.

We’re also reducing emissions in transportation and warehousing, partnering with co-manufacturers to lower their emissions, and driving innovation to create low-carbon products.

Direct operations

Energy use in our direct operations makes up about 5% of our carbon footprint, an area where we’ve made substantial progress. Re-Fuel, our global energy efficiency and decarbonization program, leverages digital innovation, operational excellence, and partnerships to drive change. We aim for 100% renewable electricity and a -46% reduction in Scope 1 & 2 emissions by 2030.

^-95%

At our Balclutha site in New Zealand, a biomass boiler sourced with local sustainable forestry waste reduced emissions by 95%

Regenerative agriculture

Agricultural emissions stem from farm operations and feed production. Danone uses a 360° approach to improve farming systems. We champion regenerative agriculture to boost soil health, biodiversity, water management, and resilience. Healthier soil sequesters carbon, reducing CO2, while better manure management lowers methane emissions. Our program also enhances efficiency with climate-smart practices, new technologies, and renewable energy.

^64,000

As part of our Climate Transition Plan, we support 64,000 farms adopting regenerative and sustainable practices across 12+ countries

Milk

Milk-related emissions represent 57% of our agricultural footprint and 70% of methane emissions. Decarbonizing milk supply is a top priority, alongside improving farm resilience and farmers’ livelihoods. That’s why we’re supporting farmers with the transition to regenerative dairy practices. To meet our 1.5°C target, we aim to cut methane emissions from fresh milk by 30% by 2030 and have 30% of key ingredients sourced from farms transitioning to regenerative agriculture by 2025.

³⁰%

We’re aiming to reduce methane emissions from fresh milk by 30% by 2030, compared to our 2020 baseline

Ingredients

Ingredients, dairy and non-dairy, are key to Danone’s Impact Journey and SBTi 1.5°C target for Scope 3 FLAG emissions. We work with suppliers to cut emissions, promote regenerative agriculture, and eliminate deforestation. From 2015 to 2022, our partnership with Royal Friesland Campina cut dairy emissions by 19%. For non-dairy, 91% of our palm oil is RSPO certified. In 2024, Danone joined the 100+ Accelerator Program to boost sustainable supply chain innovation.

^100%

We’re aiming for 100% conversion and deforestation free on our key commodities, and fully traceable supply chains by 2025

Packaging

Packaging ensures product safety, quality, and reduced food waste but accounts for 14% of Danone’s carbon footprint. We focus on low-carbon materials, optimizing designs, and improving end-of-life treatment to support a circular system. By 2030, we aim for 100% reusable, recyclable, or compostable packaging and a 30% cut in virgin fossil-based packaging. By 2040, we plan to recover as much plastic as we use and cut virgin fossil-based packaging by 50%.

¹⁰⁰%

By 2030, we aim to make all packaging 100% reusable, recyclable, or compostable. As of 2023, 84% already met this goal, and 58% of plastic placed on the market was recovered

Logistics

Logistics is essential for moving materials, finished goods, and delivering products to customers, contributing 8% of Danone’s greenhouse gas emissions. To reduce this impact, we focus on increasing truck fill rates, maximizing direct deliveries, optimizing the logistics network, improving energy efficiency, transitioning warehouses to renewable energy, and piloting electric vehicles.

^-0.8Mt CO₂e

By 2030, we aim to cut CO2E emissions by 0.8MT, compared to 2020 baseline. Mid to long term, focus is shifting transport modes and adopting new technologies.

Co-manufacturing

We work with external partners to produce and package our products. By actively collaborating with them, we aim to reduce emissions from co-manufacturing, which contribute to 7% of Danone’s carbon footprint. In North America, we’ve optimized purchased finished product networks to lower our carbon impact and implemented e-truck logistics in Europe and North America.

^1.5°C

We're already engaging co-manufacturers in North America to commit to decarbonize according to a 1.5°C pathway trajectory - and exploring how to engage 100% of co-manufacturers worldwide

Supplier engagement

Supplier engagement is key to Danone’s decarbonization strategy, as 50%+ of our 1.5°C reduction goal depends on their efforts. Partnerships like Synlait measure regenerative agriculture’s impact, and ENGIE helps cut manufacturing emissions. Climate actions are integrated into contracts to align with science-based targets and advance our goals.

⁷⁵%

More than 75% of our key suppliers are now part of sustainability programs such as the Sustainable Dairy Partnership, driving joint progress on emissions reduction

Low carbon by design

We’re innovating beyond traditional decarbonization, focusing on low-carbon ingredients and processes, including both dairy and plant-based products. Through collaboration, we integrate carbon footprints into product design, develop lower-carbon plant-based and hybrid formulas, and invest in technologies like alternative proteins. These actions support our climate goals by fostering sustainable eating habits and expanding our lower-carbon product portfolio.

⁴⁰%

In 2024, Nutricia expanded its range of plant-based products with Fortimel High Energy High Protein plant-based, which has at least a 40% lower carbon footprint compared to the dairy-based Fortimel HEHP sold in Europe

Addressing residual emissions

By 2050, even after significant emissions reductions, Danone expects to have residual emissions linked to its activities. To achieve Net-Zero, we plan to permanently remove an equivalent volume of carbon from the atmosphere and store it. Carbon removal projects, unlike carbon avoidance, focus on capturing CO₂e through initiatives such as ecosystem restoration and carbon capture technologies. These efforts will be developed in-house or through trusted partnerships, such as our long-standing involvement with the Livelihoods Funds, of which we’ve been a founding partner since 2011. With these initiatives, we aim to neutralize around 4.5 MtCO₂e per year by 2050.

Advocating in support of global climate action

Danone is committed to achieving the goals of the Paris Agreement by engaging with governments, NGOs, businesses, and consumers. We advocate for bold climate policies, including carbon pricing, regenerative agriculture, and transparency through initiatives like the Task Force on Climate-related Financial Disclosures (TCFD).

Our advocacy aligns with limiting global temperature rise to 1.5° C, partnering with leading organizations such as World Wildlife Fund (WWF), the World Business Council for Sustainable Development (WBCSD), and the Ellen MacArthur Foundation. As a B Corp, we strive for sustainability in the food industry, promoting science-based Net-Zero targets and driving transformation across global supply chains.

Climate Transition Plan

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Methane Action Plan 2025

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Driving climate action

Transforming food systems for climate action and resilience

Measuring our greenhouse gas emissions footprint

Understanding emissions across our supply chain

Committing to climate action: setting our reduction targets