PROGRESSING TOWARDS OUR 2030 GOALS?
In order to fulfill our?‘One Planet. One Health’ vision – which reflects our strong belief that the health of people and that of the planet are interconnected – we defined a set of nine integrated goals for 2030. Our more than 100,000 employees are the driving force to achieve these goals and accelerate the food revolution, while creating sustainable, profitable?value for all.?
Our nine 2030 Goals, aligned with?the Sustainable Development Goals of the United Nations, embed our business model, brand model and trust model. They formalize our ambition to deliver superior, sustainable, profitable growth through Manifesto brands that act?as true activists towards a clearly defined purpose, while empowering?employees and working with partners?in an inclusive way.?
DRIVING ECONOMIC SUCCESS & SOCIAL PROGRESS
Our strategic focus on innovation and healthy, fast-growing food & beverage categories enables us to deliver sustainable, profitable value and promote health through food. In line with?our legacy dual project of economic success and social progress, we aim to become one of the first multinational companies to be B CorpTM certified. In 2019, more than a third of our global business was already covered by the certification.?
Through our purpose-led brands, we aim to protect and nourish the health of people and that of the planet. We have set ambitious Nutritional Targets aimed at continuously improving the nutritional quality of our products and our ambition is to become carbon neutral across our full value chain by 2050; we continue to co-create carbon positive solutions, notably by helping our partners to adopt regenerative farming practices.?
We also continue to pioneer ways to empower our employees and foster inclusive growth for all our stakeholders in our value chain. As we promote gender equality, the proportion of Danone female managers, directors?and executives has improved to 51% this year and we plan to roll out our Parental Policy in all the countries where we operate by the end of 2020.
In 2019, we connected KPIs?to our 2030 Goals to measure our progress, using them as a framework to communicate our performance to?our stakeholders. This year, we achieved sector-leading scores in the Vigeo-Eiris and Sustainalytics environmental,?social and governance (ESG) ratings(1).?
These form part of the criteria influencing, upwards or downwards,?the margin of our €2 billion syndicated credit facility, further confirming that combining financial and sustainability performance is the future.
(1) As of October 2019.
EMPOWERING EMPLOYEES TO CO-OWN OUR VISION
People are at the heart of our success: they have the power?to deliver our goals today and shape what these goals?should entail in the future so that together we can be at the forefront of the food revolution. At Danone, we have decided to empower our employees to play a pivotal role in accelerating innovation and fulfilling our ‘One Planet. One Health’ vision. Through our pioneering ‘One Person, One Voice, One Share’ governance model and engagement program, we are entrusting our teams?to shape a more sustainable future, both at local and global level, and create greater long-term value for all.?
CO-BUILDING OUR ROADMAP
As part of our new strategic annual routine leveraging the insights of Danone’s 100,000 employees, ‘One Person, One Voice, One Share’ became fully connected with the development of our strategy. Transparency is guiding this effort, with our teams benefiting from a digital learning experience exploring our ‘One Planet. One Health’ vision and the existing business plans behind each of our Danone 2030 Goals. By connecting what is at stake and how we, at Danone, are part of the solution, we empower each employee to share their views and shape our future. Demonstrating a high engagement rate, 90% of employees took part in the second edition of our ‘One Voice’ consultation in 36 languages, with 41,000 volunteers helping to collate 175,700 verbatims. This enables us to leverage our employees’ views and insights to inform our strategic planning. The results showed that they recognize how our vision will help Danone succeed and that they are ready to go the extra mile to contribute in their local entities and deliver profitable, sustainable growth.?
26 VOLUNTEERS SHARE EMPLOYEES’ VOICES WITH OUR LEADERS AND BOARD
Every year, we select 26 volunteers?to share the voices of Danone’s 100,000 employees with members?of the Board of Directors and the Executive Committee. These meetings foster a rich, meaningful discussion to contribute to our strategy.?This unprecedented interaction and collaboration between employees and senior leaders is enabling us to gain further insight into needs and expectations, catalyze faster decision-making, drive innovation and empower our local teams to act and progress towards our 2030 Goals, addressing planetary and health issues.?
FOSTERING AN OWNERSHIP MINDSET
We believe that nurturing an ownership mindset is critical to unleashing?the energy and talent of our employees?to deliver our goals. In 2019, we granted every eligible employee one share?in the company, which gives them?the right to vote at the Annual Shareholders’ Meeting. It is combined with an annual dividend-based incentive scheme which, for the first year, delivered a payout of 40 times the dividend.
COLLECTIVE ACTION FOR GREATER IMPACT & TRANSFORMATIONAL CHANGE?
With our food system and society facing major challenges, joining forces with stakeholders is vital to bringing our ‘One Planet. One Health’ vision to life and creating sustainable value for all. In 2019, we collaborated with multiple partners to build?pre-competitive business coalitions to promote biodiversity and inclusive growth.?
COLLABORATING WORLDWIDE TO SUPPORT INCLUSIVE GROWTH
To help tackle social inequalities and promote inclusive growth, we partnered with the OECD to found the ‘Business for Inclusive Growth’ (B4IG) coalition, launched at the G7 Leaders’ Summit in August 2019. Sponsored by the French President, Emmanuel Macron, B4IG brings together more than 40 companies, organizations and philanthropic organizations such as the Bill & Melinda Gates Foundation and the Rockefeller Foundation. Each member has pledged to advance human rights and promote inclusion in their workplaces and supply chains. To date, B4IG members have invested $1.4 billion in more than 70 inclusive growth initiatives, benefiting some 120 million people. The coalition has rapidly expanded, concretizing plans, identifying ‘incubator’ projects to inform economic policies and launching an Inclusive Growth Financing Forum.
To help promote economic success and social progress, we also participate in the French ‘Collectif d’entreprises pour une économie plus inclusive’(1), which unites 35 companies employing nearly 1.5 million people to empower young and underprivileged people to find employment and achieve greater financial security.
(1) Business coalition for a more inclusive economy.
JOINING FORCES TO PROTECT BIODIVERSITY AND SOIL HEALTH
Of the 6,000 plant species cultivated for food, just nine account for 66% of total crop production(2), while 60% of biodiversity has been lost. Business must promote a more diverse, resilient agriculture system. In line with our Goals to protect natural resources and serve the food revolution with partners, we co-built with the World Business Council for Sustainable Development the ‘One Planet Business for Biodiversity’ (OP2B) business coalition. Launched by Emmanuel Faber at the UN General Assembly in September 2019, OP2B unites 19 leading companies in a collective effort to promote biodiversity - by scaling up regenerative farming practices, diversifying crop production, eliminating deforestation and conserving ecosystems - and will report transparently on progress and impact.
(2) UN Food & Agriculture Organization, 2019.