Danone

[Translation] “The Group undertakes to respect all of the agreements concluded between Danone and the IAU, and in first of all the Fundamental Social Principles from ILO conventions concerning in particular:child laborforced labornon-discriminationfreedom of association and the right to collective negotiation [...]The Group is also committed to promoting these Principles in the context of its relations with its suppliers. As part of the "Respect" process, the Group is committed to ensuring its suppliers adhere to the Fundamentals of Development Sustainable, and more generally for them to consider Business Conduct Principles.”

“In 2014, Danone launched the Livelihoods Fund for Family Farming (Livelihoods 3F) based on the belief that sustainable farming, climate change and poverty are closely linked. Danone is one of the funding investors, together with Mars, Inc., behind a new investment fund aimed at helping companies learn how to sustainably source the materials they need from smallholder famers, while at the same time delivering large-scale social, environmental and and economic impact to those farmers and their communities. Livelihoods 3F’s goal is to implement projects that will simultaneously restore the environment and put degraded ecosystems back on track, while improving the productivity, incomes, and living conditions of smallholders rural farmers in developing countries. As a result, investing companies will be able to connect their supply chains to the projects that will offer a farm-level traceability, smallholder inclusion and a model for largerscale replication across the supply chain. Starting 2015 Danone has explored opportunities together with Livelihoods 3F to invest in the transformation of Palm Oil production from smallholders. Livelihoods 3F will work hand-in-hand with locally anchored organizations with a deep understanding of social dynamics of family farmers. Combining this with best-in-class experts in the areas of social engineering, landscape management and agronomic best practices adapted to smallholders, the projects will achieve their economic, social and environmental objectives at large scale (several tens of thousands of farmers) and follow them up through ad hoc impact indicators over at least 10 years.”

 "With due regard for applicable law, the Business Partner refuses to engage in any discriminatory practices. Discrimination means any distinction, exclusion or preference limiting equality of opportunity or treatment. It may be based on race, color, sex, sexual orientation, religion, political opinion, age, nationality, family obligations or other considerations".

"With regard to continuous supplier improvement and audit closure, Danone’s goal is to establish regular dialogue with its direct suppliers on their responsible purchasing processes and monitor audit effective remediation, including when audits of shared suppliers are conducted by peer companies. In 2020, in the context of the Covid-19 pandemic, Danone focused on developing new processes to increase the robustness and sustainability of its supplier remediation plans."

"Concretely, all palm oil used by Danone should: [...] come from plantations that respect indigenous peoples’ and local communities’ rights to give or withhold their Free, Prior, Informed Consent (FPIC) (*) to operations on lands to which they hold legal, communal or customary rights; • come from plantations that respect the rights of all workers."

"Danone believes that only suppliers who source responsibly can help Danone reach its objective of removing deforestation from its supply chain. As part of a deforestation specific risk assessment; Danone conducts a mapping of its supply chain at least annually, which involves 100% of its direct suppliers."

“Danone supports the principles of "The Palm Oil Innovation Group" (POIG) and signed-up the Charter for Retailers and Manufacturers . POIG brings together leading NGOs with palm oil producing companies, brands and other actors in the supply chain to share and develop leading practices to ensure that responsible palm oil becomes available in the market place.” "Danone participates in several dedicated palm oil platforms such as POIG, SASPO and RSPO, as well as more generic platforms such as the Sustainable Agriculture Initiative (SAI). The Company also contributes to collaborative food and beverage sector initiatives such as AIM-Progress and the Consumer Goods Forum.”

"This new Palm Oil Policy [...] makes transparent our work on risk assessments and progresses, and take a step further aiming to foster positive change through innovation in sustainable palm oil production. [...] SUPPLY CHAIN RISK ASSESSMENT - In the interest of full transparency, palm oil sources have been rated on environmental and social criterias that make up Danone definition of responsibly produced palm oil. Three levels of priority have been defined: 1) High Priority: where doubts exist about millers that potentially have not followed Danone’s policy principles in their operations, 2) Low Priority: where millers were estimated by TFT as representing a low occurrence of not being aligned with Danone’s policy for their operations, 3) Indirect Risks: when suppliers could be at risk due to millers that are not linked to Danone supply-chain but could have practicies not consistent with Danone’s Policy."

"Business Partners shall not have dealings with restricted parties and shall comply with all applicable international trade sanctions laws [...] Danone reserves the right to confirm Business Partner adherence to the principles set out in thisCode of Conduct via on-site or desktop audits. If on-site audits are required the Business Partner willbe given sufficient warning and the audit will not unnecessarily disrupt their operations."

"Danone’s Code of conduct for Business Partners: Should you have any concerns regarding this Code of Conduct or its application please speakdirectly to your contact at Danone. If for any reason you would prefer to report a concernconfidentially through another channel we also have a dedicated reporting tool available called DANONE ETHICS LINE (www.danoneethicsline.com). This tool can also be used anonymously ifneeded."

67292  metric tonnes of palm oil in 2020

"On full year basis, Danone achieved 50% RSPO Segregated (SG) and 48% RSPO Mass balance (MB). In H2 2020, as our latest Mill Mapping shows, 55% of total palm oil volumes are RSPO SG and 44% are RSPO MB. The remaining 2% of Danone palm oil is not RSPO certified – this volume is sourced from and used in Africa. Danone is currently working on the transition of this volume to certified volumes." 

[translation] "Breakdown of identified critical non-conformities: Analysis focusing only on critical non-conformities of SMETA audits (or similar methodology) carried out respectively in 2019 and in 2020 on Danone suppliers. (Table of non compliance on specific issues included). Critical non-conformities identified and reported above are resolved or in the process of being remedied with suppliers. The two non-conformities related to forced labor have been resolved. One was related to compulsory overtime in a production site in the United States: corrective measures notably included the establishment of a new pointing and training supervisors to better manage working hours. The second was linked to the lack of a reimbursement of training costs for employees in Indonesia: corrective measures included revising the terms of the contract."

In addition, the Company publishes a list of its palm oil direct sup pliers and mills on its website. ; "Danone issued its latest Palm Oil Policy in 2015. As part of our commitment to eliminating deforestation, Danone is committed to sourcing 100% RSPO segregated palm oil by end 2020. RSPO segregated oil provides greater traceability and influence over our supply chain. We have put in place a traceability system allowing us to map our supply chain each year, with the support of Earthworm (formerly The Forest Trust). We recognize that transparency is important to making tangible progress on responsible palm oil. For this reason, Danone is publishing the results of our mapping exercise for H1 2019 and H2 2019. Danone has put in place a grievance process, designed with the support of the Earthworm Foundation, to enhance transparency and its capacity to act."

"In the interest of full transparency, palm oil sources have been rated on environmental and socialcriterias that make up Danone definition of responsibly produced palm oil.Three levels of priority have been defined:1) High Priority: where doubts exist about millers that potentially have not followed Danone’spolicy principles in their operations,2) Low Priority: where millers were estimated by TFT as representing a low occurrence of notbeing aligned with Danone’s policy for their operations,3) Indirect Risks: when suppliers could be at risk due to millers that are not linked to Danonesupply-chain but could have practicies not consistent with Danone’s Policy"

"When allegations of noncompliance against palm oil producers arise, we carry out an investigation with support from internal and external experts. If the producers are confirmed as non compliant, we work with our Tier 1 suppliers to suspend them until they demonstrate concrete progress vis-à-vis our Palm Oil Policy."

[Translation] “The Group undertakes to respect all of the agreements concluded between Danone and the IAU, and in first of all the Fundamental Social Principles from ILO conventions concerning in particular:child laborforced labornon-discriminationfreedom of association and the right to collective negotiation [...]The Group is also committed to promoting these Principles in the context of its relations with its suppliers. As part of the "Respect" process, the Group is committed to ensuring its suppliers adhere to the Fundamentals of Development Sustainable, and more generally for them to consider Business Conduct Principles.”

"With due regard for applicable law, the Business Partner refuses to engage in any discriminatory practices. Discrimination means any distinction, exclusion or preference limiting equality of opportunity or treatment. It may be based on race, color, sex, sexual orientation, religion, political opinion, age, nationality, family obligations or other considerations".

"With regard to continuous supplier improvement and audit closure, Danone’s goal is to establish regular dialogue with its direct suppliers on their responsible purchasing processes and monitor audit effective remediation, including when audits of shared suppliers are conducted by peer companies. In 2020, in the context of the Covid-19 pandemic, Danone focused on developing new processes to increase the robustness and sustainability of its supplier remediation plans."

"Danone believes that only suppliers who source responsibly can help Danone reach its objective of removing deforestation from its supply chain. As part of a deforestation specific risk assessment; Danone conducts a mapping of its supply chain at least annually, which involves 100% of its direct suppliers."

"Through its Packaging Policy, Danone seeks to guarantee the circularity of its packaging and accelerate the transition toward a circular economy on a global scale (see section Circular Economy). Danone also developed a special paper and cardboard packaging policy with several leading NGOs (notably Rainforest Alliance), with three objectives: • switch to lighter-weight packaging across its products range; • use recycled fiber wherever possible; • where that is not possible, use FSC certified virgin fiber. Information about the quantitative results is available in the 2019 Integrated Annual Report.”"

"Business Partners shall not have dealings with restricted parties and shall comply with all applicable international trade sanctions laws [...] Danone reserves the right to confirm Business Partner adherence to the principles set out in this Code of Conduct via on-site or desktop audits. If on-site audits are required the Business Partner will be given sufficient warning and the audit will not unnecessarily disrupt their operations."

"Danone’s Code of conduct for Business Partners: Should you have any concerns regarding this Code of Conduct or its application please speak directly to your contact at Danone. If for any reason you would prefer to report a concern confidentially through another channel we also have a dedicated reporting tool available called DANONE ETHICS LINE (www.danoneethicsline.com). This tool can also be used anonymously if needed."

"Danone sourced around 596 ktons of paper and board in 2020, 7% less than in 2019. In total, 98% of purchased volumes of timber for paper/board comes from recycled or virgin certified fibers. In other words, 98% is compliant with our commitment. This is an increase of 8% vs 2019. Since March 2021, 99% is compliant. "

In  table in their most recent report, they say that in 2020, 98% was "Compliant =recycled paper + virgin certified" "Since March 2021, 99% is compliant. " 

[translation] "Breakdown of identified critical non-conformities: Analysis focusing only on critical non-conformities of SMETA audits (or similar methodology) carried out respectively in 2019 and in 2020 on Danone suppliers. (Table of non compliance on specific issues included). Critical non-conformities identified and reported above are resolved or in the process of being remedied with suppliers. The two non-conformities related to forced labor have been resolved. One was related to compulsory overtime in a production site in the United States: corrective measures notably included the establishment of a new pointing and training supervisors to better manage working hours. The second was linked to the lack of a reimbursement of training costs for employees in Indonesia: corrective measures included revising the terms of the contract."

Danone report a list of their Tier 1 pulp and paper suppliers.

[Translation] “Regarding level 2 suppliers (supplying pulp), this new strategy will be formalized and shared transparently with suppliers Danone level 1 packaging, including the list of endangered tree species and countries of origin. These level 1 providers will try to overcome obstacles potentials linked to traceability and transparency within the chain supply. In high-risk countries, Danone will require third-party audits parts managed and implemented by level 1 suppliers to guarantee the compliance from 2014.”

 [Translation] “The Group undertakes to respect all of the agreements concluded between Danone and the IAU, and in first of all the Fundamental Social Principles from ILO conventions concerning in particular:child laborforced labornon-discriminationfreedom of association and the right to collective negotiation [...]The Group is also committed to promoting these Principles in the context of its relations with its suppliers. As part of the "Respect" process, the Group is committed to ensuring its suppliers adhere to the Fundamentals of Development Sustainable, and more generally for them to consider Business Conduct Principles.”

"For indirectly sourced soy mainly used for cow feeding, Danone is implementing projects to help farmers plant local soy alternatives making them less dependent on imported soy, as well as reducing the risk of importing soy from deforestation prone areas. For example, Danone Germany, with the support of the Ecosystem Fund, launched in 2017 the Profee project which aims to encourage a switch to regional sources of protein and improve the feeding practices of family farmers. This helps to maintain the agriculture cultural landscape in Bavaria and improve soil quality as well as reduce the risk of deforestation in Latin America by sourcing local feed."

 "With due regard for applicable law, the Business Partner refuses to engage in any discriminatory practices. Discrimination means any distinction, exclusion or preference limiting equality of opportunity or treatment. It may be based on race, color, sex, sexual orientation, religion, political opinion, age, nationality, family obligations or other considerations".

"With regard to continuous supplier improvement and audit closure, Danone’s goal is to establish regular dialogue with its direct suppliers on their responsible purchasing processes and monitor audit effective remediation, including when audits of shared suppliers are conducted by peer companies. In 2020, in the context of the Covid-19 pandemic, Danone focused on developing new processes to increase the robustness and sustainability of its supplier remediation plans."

"Danone believes that only suppliers who source responsibly can help Danone reach its objective of removing deforestation from its supply chain. As part of a deforestation specific risk assessment; Danone conducts a mapping of its supply chain at least annually, which involves 100% of its direct suppliers."

“In Europe, Danone has worked with Transparency for Sustainable Economies (Trase) to ensure the traceability of soy imported from Brazil, which could come from regions at risk of deforestation.” Deforestation-free soy policy includes a commitment to "Help drive change at a global scale through the Consumer Goods Forum, the Sustainable Agriculture Initiative or any global initiatives that can help achieve Danone goals."

"Danone led a traceability exercise with Transparency for Sustainable Economies (Trase) todetermine the risk linked to soy imported to Europe, Russia and Africa for animal feeding.Based on this study, we estimate that 20% of the soy used for animal feeding in Europe, Russiaand Africa is imported from zones where there is a risk of deforestation. Our strategy tominimize this risk is to work with farmers to transition to local soy/soy alternatives. We aim toachieve this transition by December 31, 2020." "“ For the environment, the risk-mapping exercise confirmed the three priority categories set out in Danone’s Forest Footprint Policy (palm oil, soy, and paper and cardboard packaging).”

"Business Partners shall not have dealings with restricted parties and shall comply with all applicableinternational trade sanctions laws [...] Danone reserves the right to confirm Business Partner adherence to the principles set out in thisCode of Conduct via on-site or desktop audits. If on-site audits are required the Business Partner willbe given sufficient warning and the audit will not unnecessarily disrupt their operations."

"Danone’s Code of conduct for Business Partners: Should you have any concerns regarding this Code of Conduct or its application please speakdirectly to your contact at Danone. If for any reason you would prefer to report a concernconfidentially through another channel we also have a dedicated reporting tool available called DANONE ETHICS LINE (www.danoneethicsline.com). This tool can also be used anonymously ifneeded."

"Danone sources 56K tons of soybeans directly, for use in our plant-based products in Europe (Alpro) and North America, from areas that are not at risk for deforestation. More specifically, Danone sources 48 K tons of soybeans directly for Alpro, and 8 K tons for Danone North America. 60% of soybeans used by Alpro are grown in Europe (France, Austria, Italy, Netherlands, Belgium), and the remaining 40% come from Canada. 100% of Alpro soybeans are ProTerra certified, covering environmental, social and non-GMO criteria. About 15% are also organic, and 85% are conventional. Soybeans used by Danone North America are grown in the United States with a small % from Canada; over 2/3 of which are non-GMO Project Verified and 1/3 are Certified Organics."

[translation] "Breakdown of identified critical non-conformities: Analysis focusing only on critical non-conformities of SMETA audits (or similar methodology) carried out respectively in 2019 and in 2020 on Danone suppliers. (Table of non compliance on specific issues included). Critical non-conformities identified and reported above are resolved or in the process of being remedied with suppliers. The two non-conformities related to forced labor have been resolved. One was related to compulsory overtime in a production site in the United States: corrective measures notably included the establishment of a new pointing and training supervisors to better manage working hours. The second was linked to the lack of a reimbursement of training costs for employees in Indonesia: corrective measures included revising the terms of the contract."