Danone is a world leading food and beverage company dedicated to bringing health through food to as many people as possible. With more than 100,000 employees, Danone generated 23.6 bn euros sales in 2020 with three businesses: Essential Dairy & Plant-based products, Waters and Specialized Nutrition.

Africa: Northern Africa, Southern Africa, Western Africa

America: Northern America, South America

Asia: Eastern Asia, Central Asia, South-eastern Asia, Southern Asia, Western Asia

Europe: Eastern Europe, Northern Europe, Southern Europe, Western Europe

Oceania: Australia and New Zealand

By 2025, Danone will reduce total annual virgin plastic in packaging weight by 33% compared to 2019. Since 2018, we consistently reduced the use of virgin plastic in absolute terms, notably thanks to the sharp increase in the use of recycled content (10% in 2020 vs. 6% in 2018). By 2025, our ambition to go further will first be driven by our commitment to use 50% recycled content for plastics. We will also focus our efforts towards plastics reduction through alternative delivery models, optimized formats and material substitution where relevant. To bring our ambition to life, we created the "Danone Packaging Transformation Accelerator", a new structure to foster circular economy innovation, notably in the space of reuse models and new materials.

As part of eliminating problematic or unnecessary plastic packaging:

- We have worked on eliminating PVC packaging. Phase out of PVC sleeves in our Water bottles in China have been completed in Jan 2021.

- We started lowering our dependency on PS, by moving entire PS cups portfolio in UK to PET cups and launching PET & rPET cups in France and Spain, as well as paper-based cups in France.

- We have accelerated the elimination of plastic straws and spoons. As of 2020 we have already removed 170 million plastic straws and moved 34 million to paper. We have also removed more than 7 million spoons and moved 2 million to wood.

As part of eliminating problematic or unnecessary plastic packaging by 2025, we will:

- Phase out all PVC packaging by end 2021, since it interferes with the recycling of PET. Phase out of PVC sleeves in our Water bottles in China have been completed in Jan 2021.

- Phase out PS packaging worldwide by 2025. As of 2021, we have moved entire PS cups portfolio in UK to PET cups and we have also launched PET & rPET cups in France, Spain and Belgium. For instance, in 2021, we invested in Bailleul (France) 6M€ to transform 3 out of 6 production lines to PET, and the cups contain 30% recycled PET. More launches are planned in the coming years to reduce PS usage, either in reuse models or alternative materials.

- Continue implementing alternatives to plastic straws and spoons by 2025: in 2020 we already eliminated 7 million spoons and moved 2 million to wooden, and we eliminated 170 million plastic straws and moved 34 million to paper. In 2021, plastic straws elimination will be accelerated.

Recent or in-progress pilots of reuse models for new products or packaging, Reuse models in place for consumer facing products or packaging

Product line(s) with reuse model(s): 6 (24% of total) (see endonotes for more information)

Market(s) where reuse models are available today: Northern America, South America, South-eastern Asia, Western Asia, Western Europe (33% of total)

More than 50% of Danone water volumes and ~1/3 of the whole business are sold in reusable packaging. In 2020, we reached our target to have outside Europe more than 60% of Water volumes sold in reusable pack (63,8%). Overall, the share of reusable plastic packaging increased to 4,8% in 2020 (vs. 4,3% in 2019).

In addition, the Company is piloting alternative delivery models;

-We expanded our offer with Loop by Terracycle with yoghurt/plant-based products sold in returnable glass jars in France and the UK

-We started offering returnable glass bottles for the HORECA sector in Indonesia

-For our Dairy business, we conducted a test of a bulk yogurt dispenser in a bulk store in Paris, under “Faire Bien” brand. This pilot has been expanded in March 2021 to 5 stores in Paris region. To bring our ambition to life, we set up the “Danone Packaging Transformation Accelerator”, a new structure to foster circular economy innovation, notably in the space of reuse models.

Piloting reuse models for new products or packaging

Introducing or expanding reuse models for consumer facing products/packaging

Danone is committed to accelerate on reuse models both on returnable packaging and dispensing. We are deploying returnable glass bottles for the hospitality sector in new geographies (e.g. Spain in 2021) and extending our product range with Loop by Terracycle. For instance, in 2021, we have launched with Loop in France a full range of baby food sold in reusable glass jars in addition to our water and dairy/plant-based offer. We are also testing dispensing solutions. For our Dairy business, we started and will continue to roll out a bulk yogurt dispenser in organic stores in Paris, under “Faire Bien” brand, following successful trials We have also set up the “Danone Packaging Transformation Accelerator”, a new structure to foster innovation notably for new delivery models, connecting with innovative ecosystems.

Our recyclability rate for plastics in 2020 was 67.0% (flat vs. 2019). Progress has been offset by unfavorable mix due to Covid crisis with sharp decrease of Water business. In 2020, we streamlined the use of plastic with label-free bottles and the launch of several alternative packaging materials such as beverages in can formats (e.g. Poland, Mexico), glass (e.g. Indonesia) and beverage carton (e.g. Mexico). We moved our PS cups portfolio in UK to PET cups and launched PET & rPET cups in France and Spain. We are also innovating in consumption models such as ferments for DIY yoghurt, very large formats for water and evian (re)new home hydration dispenser. Our recyclability % will sharply increase with the phase out PVC in 2021.

Danone works with relevant stakeholders to strengthen recycling systems: -We support EPR, including Deposit-Return Schemes for beverage bottles

-In Indonesia, we co-founded a voluntary EPR to improve collection and inclusion of waste pickers

-Through Danone Ecosystem Fund, we continued supporting inclusive recycling projects (40kT of waste recycled in 2020; 7500+ people supported since 2010)

-We committed $15mn in the Circulate Capital Ocean Fund for the development of recycling infrastructure in South & South East Asia. In 2020, the Fund invested $40M in 7 companies in India and Indonesia.

-We continue working with producer responsibility organizations & other partners to implement recycling streams for PET cups in our major markets.

No - We believe the packaging category(ies) 'PP other rigid' (representing 0.071% of our portfolio), meet the thresholds of recyclable 'in practice and at scale' of 30% recycling rate for at least 400 million people (see endnotes for more information).

100% reusable, recyclable or compostable

We are aiming to use 100% reusable, recyclable or compostable packaging by 2025. We will in particular:

- Complete phase out PVC by end 2021

- Phase out PS worldwide by 2025: we already started lowering our dependency on PS, with the aim to progressively replace it by new delivery models and more sustainable materials in upcoming years

- Shift certain product lines from plastic to alternative materials

- Continue implementing alternatives to plastic straws and spoons.

In order to increase the recycling of our packaging, we will:

- Support EPR principle to accelerate waste management and recycling systems, including Deposit-Return Schemes for beverage bottles;

- Sharpen our focus on consumer education in markets with a high risk of leakage.

- Initiate or support collection and recycling initiatives in each of our top 20 markets (by sales volume) by 2025;

- In particular, we are committed to deliver our Aqua pledge (Indonesian water brand) to collect more plastic than it uses by 2025. This will be achieved through the scale up of newly founded Producer Responsibility Organization ("iPRO"), the support of informal collection and the financing of formal infrastructure.

In 2020, Danone reached 26% recycled PET for our Water business (excl. countries where rPET is not allowed), meeting its 2020 target of 25% that was set back in 2016. This rate has been in constant increase over the last years (20% in 2019 and 17% in 2018). Overall, Danone reached 10% recycled materials for all plastic packaging (stable vs. 2019, +4 pts vs 2018). This performance is mainly linked to recycled PET usage, as it is the only recycled plastic widely allowed for food contact. In 2020, the increase of rPET rate has been offset by Waters business volume decline linked to Covid. We continued the launch of 100% rPET bottles. Since Sept 2020,

• all Volvic bottles in Germany

• all small evian and Volvic bottles in France

• all evian takeaway bottles in the UK have been 100% rPET.

Our Dairy business started to integrate recycled PET with the launch of 30% rPET pots in France & UK and we will go further in the coming years.

In order to reach our target of 50% post-consumer recycled plastic content in our plastic packaging by 2025, we will:

-Double down on the usage of rPET for our Water business with the ambition to reach 100% rPET in Europe and 50% worldwide by 2025

-Continue the expansion of recycled PET in our EDP business leveraging PS to PET transition. For example, early 2021, Belgium followed France and UK offering 30% rPET cup for Light & Free range.

-Explore the usage of recycled polyolefins (PP & PE) leveraging new recycling technologies.

After investing in 2018 in US-based Closed Loop Fund, we committed in 2019 $15mn to Circulate Capital Ocean Fund for the development of recycling infrastructure in South & South-East Asia. In 2020, we announced €900mn to be invested on packaging transformation including: redesign, beyond plastic, reuse, collection systems & recycled content financing. We also set up Danone Packaging Transformation Accelerator, a new structure to foster innovation aiming at investing €200mn by 2025.

2020 environmental data have been audited and approved by statutory auditors (PWC) and published in the Registration Document, Chapter 5 (verification statement: p206). Scope: Packaging volumes by type and geography, recyclability %, recycled content %.

Our Water division has been severely impacted by Covid-19-related travel restrictions, affecting out-of-home sales channels and resulting in a deterioration in volumes. In addition to our efforts to streamline the use of packaging materials, this translated into an important decrease of Danone plastic usage in 2020.

To claim recyclability of our packaging (meeting the 30% recycling rate threshold for at least 400 million people), we used the following evidence: Our assessment is that PP bottles and other rigid are sorted and recycled in a single PP rigid stream, making it difficult to have accurate recycling rate per packaging category. External studies (Eunomia, Deloitte) show that recycling rate for household PP rigid packaging in above 30% in Europe.

For product line(s) with available reuse model(s): A product line here is defined as a combination of a product type and a packaging type, for example, Water PET bottle or Drinkable yoghurt HDPE bottle.