SDG 13 Icon - Climate Action

SDG 13: CLIMATE ACTION

 

TAKE URGENT ACTION TO COMBAT CLIMATE CHANGE AND ITS IMPACTS

 

Engagement of Danone: Major Focus

GLOBAL ISSUES

Mitigating climate change and its impacts will require building on the momentum achieved by the Paris Agreement on Climate Change, which entered into force on 4 November 2016. Stronger efforts are needed to build resilience and limit climate-related hazards and natural disasters from which populations suffer from, since planetary warming continued this year. Knowing that agriculture and deforestation account for about a quarter of global greenhouse gas emissions from human activities, better practices at this level could contribute to climate change mitigation.

SDG 13 TARGETS TO WHICH DANONE CONTRIBUTES

Source: United Nations
 

  • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries. 
  • Target 13.2: Integrate climate change measures into national policies, strategies and planning.

RELATED BUSINESS THEMES RELEVANT FOR DANONE

Source: SDG Compass

  • Energy Efficiency
  • Environmental Investments
  • GHG emissions
  • Risks and Opportunities due to Climate Change

DANONE ENGAGEMENT ON SDG 13

Danone is engaged on SDG 13 as a major focus

Being a food company means we rely on nature, agriculture and the farmers to do our job. To grow our business sustainably and ensure our global food cycle is resilient, we must address the systemic challenge of climate change. It is in our interest and our responsibility to help fight climate change and contribute to achieving a decarbonized economy. This must start with reducing our own carbon footprint. We measure our impact including our full scope of emissions throughout the value chain, i.e. our direct and shared scopes of responsibility (including Danone’s related GHG emissions coming from raw materials and agriculture).

As stated in its 2015 Climate Policy, Danone has committed to become a carbon neutral company by 2050, on its full scope of responsibility including agriculture, through solutions co-created with its partners.

We can’t reach zero net carbon within our full value cycle alone. Only by working together in partnership with our ecosystem of farmers, suppliers, customers and local communities we can make our vision a reality. Reaching our goal means not only reducing our carbon emissions but also helping nature to sequestrate more carbon, promoting regenerative agriculture, tackling deforestation from our supply chain and managing all natural resources sustainably.

Therefore to reach carbon neutrality, Danone climate strategy focus on three main levers of action: Reduction, Sequestration and Offset of its remaining emissions.

 

COP 23: reaffirming Danone's climate ambition

At COP 23, in 2017 Danone reaffirmed its climate ambition:

  • Danone’s emission reduction targets received official approval by the Science Based Targets initiative. In 2019, Danone pledged to define targets for reducing greenhouse gas emissions in line with a 1.5°Celsius climate scenario.
  • Danone joined the international 4 per 1000 Initiative on agriculture, food security and climate.
  • Danone sharpened its focus on regenerative agriculture as a way to broadly reduce emissions in the future and respond to consumer demand for naturality and transparency.

Danone main trajectory milestones include:

  • 50% emissions intensity reduction on Full scope 2015-2030
  • 30% absolute emissions reduction on scope 1 & 2 2015-2030
  • Carbon positive solutions development : the Livelihoods funds aims to sequester 10 million tons of CO2 over 20 years
  • By the end of 2019, Danone has estimated that the peak of its carbon emissions on its full scope was reached, five years ahead of its original plans and commitments (2025) and one year prio the 1.5°C Science-Based Targets commitment.

In line with our ambition to lead the way to create and share sustainable value and in light of the urgency for climate action, Danone is taking further steps in 2019, with the support of its Board of Directors, to better connect environmental, social, and governance metrics and financial performance, starting with carbon.

Danone shows for the first time a “carbon-adjusted” recurring earnings per share (EPS) evolution that takes into account an estimated financial cost for the absolute GHG emissions on its entire value chain (learn more).

Moreover, Danone is stepping up the speed and increase the depth of its transformation actions to put climate further at the core of its growth model. This will translate into an accelerated investment plan of around €2 billion cumulative over the 2020-2022 period on brands, climate and agriculture, packaging (about €900 million) and digitalization.

Danone's commitments to carbon reduction trajectory

Commitments related to Danone carbon reduction trajectory include:  

  • HFC refrigerants: Danone committed in 2010 to ensure that only natural refrigerants based on climate-friendly CH or CO2 technologies are in use within its operations
  • Deforestation: Danone committed to eliminate deforestation from its supply chain by 2020 which includes commodities such as soy, palm oil or pulp and paper
  • Renewable Energy: In December 2017, Danone joined the RE100 initiative and made a commitment to transition to 100% renewable electricity by 2030, with an intermediary step of 50% by 2020. RE100 is a global and collaborative initiative that includes more than 100 influential companies committed to 100% renewable electricity.

Moreover, Danone strikes to keep a leadership role on the Carbon Disclosure Project (CDP) Climate Change. In 2019, Danone obtained “triple A” score by the non-profit organization CDP, for CDP Climate Change, CDP Forests and CDP Water questionnaires, for its transparency and environmental performance in the fight against climate change and deforestation and water resource preservation.

In 2019, Danone released a cross-reference table making it possible to identify the main information of its Universal Registration Document 2019 with disclosures related to Taskforce on Climate-Related Financial Disclosures (TCFD) recommendations. In a general way, Danone’s disclosures related to climate change are in line with the recommendations put forth by the TCFD.

 

EXAMPLES OF DANONE'S INITIATIVES

DANONE 2019 KEY PERFORMANCE INDICATORS

24.8%

reduction of GHG emissions in intensity on full scope (in g CO2 equivalent/Kg product) (Baseline 2015).

29.1%

reduction of GHG emissions in absolute on scope 1 & 2 (In g CO2 equivalent/Kg product) (Baseline 2015).

DANONE PARTNERSHIPS (SDG 17)

  • In 2019, Danone pledged to define targets for reducing greenhouse gas emissions in line with a 1.5°Celsius climate scenario, heeding the call of the UN Global Compact and initiatives of Science-Based Targets and We Mean Business. Danone is currently working on these new reduction targets with the SBT initiative.
  • In 2018, Danone partnered with UNITAR to develop through 'UN CC:Learn' a learning program on climate change for Danone employees. This partnership nourishes the global ambition of the company to empower its teams so that they can drive sustainable change (learn more).
  • The Livelihoods Carbon Fund: Danone initiated and invited other companies to establish the Livelihoods Fund which brings together Danone with nine companies to invest in large projects that contribute to mitigating climate change by sequestering large volumes of carbon in forests and natural ecosystems, and improving the well-being of local populations (learn more).
  • By joining forces with '4 per 1000', Danone aims to broaden these efforts and expand collaboration with experts, NGOs, governments and private companies. Launched by the French government in 2015, during the COP21, '4 per 1000' is an international platform to catalyze collaboration on soil health and soil carbon sequestration among different stakeholders (learn more).

RELATED SDGS

  • SDG 1: No Poverty
  • SDG 2: Zero Hunger
  • SDG 7: Clean and Affordable Energy
  • SDG 12: Responsible Consumption and Production
  • SDG 14: Life Below Water
  • SDG 15: Life on Land

RELATED DANONE 2030 GOALS