2024
Danone
Year
Sector
Alimentation
ACT assessment methodology
Agriculture & Agrifood
Performance Score
Strengths of the transition plan: Danone has medium-term (2030) and long-term (2050) targets for all scopes, and intermediate targets for scopes 1&2 and part of AFOLU emissions (by 2025). Several targets are on track to be achieved, on the 2020-2030 objectives. The company has set itself a target of non-deforestation and non-conversion for all countries, on its main raw materials (target of 100% by 2025). The traceability of supplier data and its monitoring is supported by external companies. The company evaluates the quality of its agricultural raw materials in terms of animal welfare (86% of the volume of milk evaluated) and transition to regenerative agriculture (39% of the volume of its key ingredients). In addition, climate issues are well integrated into the company's overall strategy. Danone uses a fictitious carbon price for investment purposes, based on the market price of EU-ETS emission allowances. Climate future scenarios cover the entire company's activity, are based on several variables, include a carbon price, and their results are qualitatively explained. Finally, Danone plans to increase its range of plant-based products, as well as targets for packaging: 100% of its packaging will be reusable, recyclable or compostable by 2030 (85% will be reusable, recyclable or compostable by 2024), halving the use of virgin packaging from fossil resources by 2040, and by 30% by 2030, by accelerating reuse and recycling, Replacement of plastic packaging with glass, metal and paper while verifying the carbon gain of these alternatives. Danone is promoting a reduction in the use of pesticides through its regenerative agriculture program. In 2024, 39% of Danone's key ingredients come from production that has begun its transition to such agriculture. Danone has reduced its food waste ratio per quantity of products sold by 18% compared to 2020.
Areas for improvement identified: Danone could provide more details on all these actions and quantify the share of taxonomy-aligned capex. The company does not publish data on scope 3 emissions intensity. It is not explained whether the transition plan is updated, or how often. The climate future scenarios are not explained in terms of quantitative and/or financial impact. Finally, the commitments required of suppliers remain relatively unclear, both in terms of scope, incentives, requirements and Danone's response to suppliers who do not comply with the proposed commitments.
Areas for improvement identified: Danone could provide more details on all these actions and quantify the share of taxonomy-aligned capex. The company does not publish data on scope 3 emissions intensity. It is not explained whether the transition plan is updated, or how often. The climate future scenarios are not explained in terms of quantitative and/or financial impact. Finally, the commitments required of suppliers remain relatively unclear, both in terms of scope, incentives, requirements and Danone's response to suppliers who do not comply with the proposed commitments.
Narrative Score
Business model and strategy: Danone has identified low-carbon business models. The most advanced (plant-based) is mature and profitable, as Danone is the world's leading player in this segment. However, this business model currently represents only a small part of Danone's sales volumes.
Consistency and credibility: Danone's transition plan is robust and credible. The eight decarbonization programs that will be deployed to enable the Group to achieve its emission reduction objectives are detailed and the associated carbon gain is quantified.
Data quality: Not all of the data necessary for a full ACT assessment could be collected. However, the analyst was able to appreciate the quality and accuracy of the publicly available documents.
Reputation: Controversies related to plastic pollution have been noted.
Risks: The company has conducted an analysis of the risks (physical and transitional) and opportunities related to climate change.
Consistency and credibility: Danone's transition plan is robust and credible. The eight decarbonization programs that will be deployed to enable the Group to achieve its emission reduction objectives are detailed and the associated carbon gain is quantified.
Data quality: Not all of the data necessary for a full ACT assessment could be collected. However, the analyst was able to appreciate the quality and accuracy of the publicly available documents.
Reputation: Controversies related to plastic pollution have been noted.
Risks: The company has conducted an analysis of the risks (physical and transitional) and opportunities related to climate change.
Trend score
While some challenges remain, Danone is one of the most dynamic companies in its sector in terms of decarbonization. The company has an ambitious and consistent trajectory, and is demonstrating efforts to reduce GHG emissions across its entire value chain.
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
50
Disclosure score (/100)
82
ℹ️
Narrative Score (A > E)
B
Trend Score (- = +)
=
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 82%
Material Investment Score : 33%
Intangible Investment Score : 20%
Sold Product Performance Score : 43%
Management Score : 53%
Supplier Engagement Score : 55%
Client Engagement Score : 0%
Policy Engagement Score : 57%
Business Model Score : 68%
Indicator weight by module