Présentation Formation RSE Singapour

1. Sustainability & Danone Asian study case Yann Brault, Director CSR AQUA & Asia Pacific Ecosysteme

2. Sustainability definition The ability to provide for the needs of the world's current population, without compromising future generations. (www.sustainabletable.org)

3. Needs?

4. Corporate Social Responsibility Integrated in the Danone Economic & Social Project SOCIAL SUSTAINABLE ENVIRONMENT ECONOMIC Multi stakeholderprocessensuringsustainable developmentthroughsocial, economical, & environmentalperformance

5. “The frontiers of the company do not stop at the factory gates…” A. Riboud (1972)

6. WhatisatstakeFor a foodcompanylike ours ? 1 Bnpeople under-nourrished400 Mn sufferingfromobesity 84% of people in Brazil and 79% in Spain thinktheir society isunfair 40% of foodproducediswasted in USA, 800 000 people going to foodbank network 4 Bntonnes of waste per year and 15 Mn wastepickers 2 Bnpeople livedthanks to smallfarmingactivity 25% of worlwide population living withlessthan 1,25 USD per day 210 Mnpeople unemployed + 200 Mn extremelypoorworkers Bring health through nutrition to the largest number of people 6

7. Ourenvironmentischanging From mass media to mass interaction And thus 78% trust peers re- commendation, only 14% trust brand communication We cannot control the communication about our company Explosion of social networks From one-way communication to dialogue From a brand perspective to a companies perspective From consumer’s to citizen's It’s about the way we create product benefit 7

8. … thiscreatesmoreandmorechallenges Trust on multinationals is fading down… …with growing importance of NGOs 48% 29% aid or trade? Source: EdelmanTrust Barometer Source:City University of Londen …raising suspicion for our products Therefore: a stakeholder, not a shareholder, world Investors/Shareholders 14% CEO‘s 22 countries: When a CEO makes business decisions for his/ her company, which stakeholder should be most important to a CEO‘s decision? All stakeholders are equally important 52% Customers 13% Society at large 11% Employees 7% Source: Edelman Trust Barometer 2010 Government 3% 8

9. Integrated in Danone MISSION and STRATEGY 4 ALL HEALTH Bring health through food to the largest number of people NATURE PEOPLE

10. Consideredalong the overall value chain… Production Fin de cycle Ventes Un savoir-faire durable dans tous les domaines De nouvelles formes de modèles économiques Minimiser l’impact environnemental par le recyclage Approvisionnements Transports Consommations Assurer la disponibilité des produits en réduisant l’impact environnemental Une responsabilité partagée avec nos fournisseurs Favoriser une alimentation saine et responsable

11. DANONE CSR approach Social INNOVATION = uniqueness Human Rights Human Relations Environment Consumers Governance relations Sustainable business Foundations/ basics

14. Safety at work

16. Working time

17. Compensation & benefits

19. Environmental risks

20. Raw materials (water, milk, others)

23. CSR principles vs suppliers

24. Local communitiesGovernance

25. THE TARGET ACTION

26. 4 platforms to create social value and sustain our business

27. Laiterie du Berger GrameenDanone

28. DANONE for Nature Roll out Agriculture Biodiversité Eau Climat Packaging Réduire Communiquer - 30% CO2/kg 2008 - 2012 Lait danone 40 ans Natural ingredients 3 Plants Mesurer Compenser Fonds Danone pour la Nature

29. An answer to strategic issues combining business and social opportunities

30. The Danone EcosystemFund’s Scope 19 1 - EMPLOYMENT 2 – SKILLS AND EMPLOYABILITY 3 –MICRO ENTREPRENEURSHIP Finance common purpose initiatives that reinforce Danone Ecosystem 100 M€ in 2009 + Up to 1% of Danone’s annual profit from 2010

31. Projectseligibilitycriteria 4 MAIN CRITERIA: Be initiated by a Danone CBU Create economic and social value inside Danone’s ecosystem Be replicable and/or scalable Be jointly created with a not-for-profit organization (NGO for example) 20

32. 5 clusters answering different business & societal challenges SOURCING Secure the supply of raw materials locally in all countries where Danone manufactures fresh dairy products. Improve the life conditions and incomes of farming families. RECYCLING Structure the sector through the creation of cooperatives to collect and transform packaging materials and give them a market value. Provide income and better life condition to underprivileged population working in the sector. DISTRIBUTION Support alternative micro businesses and small stakeholders. Traditional logistics solutions poorly adapted to supply small quantities of goods to a multitude of small shops. Micro distribution is a means to support economical and social inclusion TERRITORY Have an active contribution to initiatives that bring local economical, social and environmental value to territories where DANONE operations have direct or indirect impact. CARING SERVICES Sensitize and train health care professionals to the link between nutrition and the health of the dependent people, particularly regarding some chronic diseases. Develop awareness of brand amongst health care professionals and KOLs.

33. AQUA Lestari Empower communities & protect the environment

35. Huge environmental issues as waste management, deforestation, unsustainable agriculture practices

39. importance of showing the example

44. Protection– nothing between you and nature

45. Preservation –joint collaboration with local communities

46. Can be dialed up along with our actionsA ‘reason why’ Uniqueness of origin Protection policies Natural purity

48. Take advantage of Lestari initiatives

49. … need to cascade through KOLs pyramid

50. integration brand + corporate

51. media integrated strategy

52. Anticipate future

53. Crack consumer interest + how to speak

54. packagingA reassurance We are responsible …and committed to protecting the planet

56. High contributor in past 3years for AQUA perception

57. A distant leader  a leader that cares for all

58. Walk-the-talk is key

59. no promotional speak

60. long term commitment

61. Multi impact :

62. proven to be sales trigger + equity builder

64. 10 employees will go to NTT to see program

65. schools programs in 1000 schools

66. 30 000 beneficiaries

68. More than 30 on-going program in 18 locations By Sector

69. Water Access, Sanitation & Hygiene (AMPL) Today, more than 35.000 people Target 2007-2011: 75.000 people BOGOR * 6.100 benef. * 2009 - 2010 SERANG * 4.100 benef. * 2009 - 2010 BEKASI * 800 benef. * 2009-2010 SUKABUMI * 9.800 benef. * 2009-2011 Partners PESAT BERASTAGI * 800 benef. * 2009-2010 KLATEN * 2.600 benef. * 2009-2010 NTT * 50.000 benef. * 2007 - 2011 LAMPUNG * 400 benef. * 2009-2010 KEBUNCANDI * 400 benef. * 2009-2010 SUBANG * 1.800 benef. * 2009-2011 Resources : Google Earth

72. Hutan Mangrove* National Park Rehabilitation Resources : Google Earth

73. The “Reforesting Soap” Fires happen every year caused by agricultural activities, hunting, or charcoal production = 400 Ha forest in arjuna mount damaged / year Danone Aqua contribute to solve this problem with “Parenting forest program” involving all stakeholder in arjuna mount ( Perhutani, government, LMDH , Kaliandra foundation ). In 2008 -2009 more than 70.000 trees planted .

74. A Social Business Model to empower farmers Besides trees planting , activity in parenting forest is economic empowerment for “Forest Village Community", one of activity is production soap from Sirih oil. Demand from local market is 2000 pcs/ month Production capacity from community 1500 pcs/month In 2010 – 2011 will increase capacity up to 5000 pcs/month (invest in oil machine and soap production facilities)

77. 17 villages, 800 Ha irrigated, 2500 familiesDownstream Vegetal protein/porridge ingredient (Rice, soy bean) Figure 1. Farmers’ proposed organizations in Pusur River watershed

79. Sustainable Agro forestry (Model “Tumpang Sari” organic)

81. Sustainable Agro forestry

82. Partnership with local government and Al-AminAQUA Conservation PArk

83. Merci TerimaKasih

84. CSR Operating System Blackburn, William R. 2007, The Sustainability Handbook

87. 120 Millions mangroves replanted within the1st project OCEANIUM / Sénégal