2021 MATERIALITY MATRIX REPORT - WHAT MATTERS TO OUR STAKEHOLDERS
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2021 MATERIALITY MATRIX
REPORT
WHAT MATTERS TO OUR STAKEHOLDERS
Responsible and sustainable business involves engaging with our stakeholders to refine our strategy. This
year, we have renewed our materiality matrix, a key tool to deliver on our One Planet. One Health frame of
action, identifying our priorities according to their importance for external and internal stakeholders as well
as their impact on Danone’s business success.
An updated list of 35 key topics that have been identified in collaboration with our stakeholders are shown
in our latest matrix below. Covering environmental, health, social, business and governance aspects, these
issues have been evaluated to determine sustainability challenges and opportunities for Danone.
MATERIALITY METHODOLOGY
In order to refine our understanding of the key challenges and address them strategically, we followed a
rigorous two-step process which built on the inaugural global materiality assessment in 2017:
• Identification: Using the 2017 list of topics as a basis, we undertook a review of the most recent
literature to identify any new or emerging issue to be included in 2021, and to understand the
relevance of existing issues based on their evolution in recent years. This enabled us to set an
exhaustive list of 35 topics that are directly or indirectly connected to Danone’s business and
stakeholder interests.
• Assessment and prioritisation: A quantitative survey was conducted worldwide, involving more than
150 Danone employees, 230 professional stakeholders and key customers. This survey allowed us to
prioritise and assess material issues, and to identify the top tier topics that Danone must focus on.
The topics were ranked based on their perceived impact on Danone’s business success according to
Danone employees, and on their perceived importance for external stakeholders (i.e.,
representatives from NGOs, academia, business, government, as well as representatives from
Danone’s business partners such as retailers).
• Forecasting: Given the sustainability agenda is fast-moving, we added a new element to our
materiality assessment this year whereby we invited survey respondents to tell us which material
topics they forecast will become more important in the next five to ten years (on the next page,
visualised through the size of topic bubbles).UNDERSTANDING THE MATERIALITY RESULTS
• Topic tiering: The topics’ distribution on the materiality matrix, across three distinct tiers,
provides useful insights on how to understand and manage each topic in the short, medium,
and long term:
o The first tier is made up of the 12 priority topics that are the most material to both
Danone’s external stakeholders and the company’s business success. These topics
are intimately linked to Danone’s evolving business model. They are core to the
activation and delivery of Danone’s One Planet. One Health.
o The second tier is a cluster of major topics for creating medium- and long-term
value. Many of these topics are already being addressed by Danone through policy
development, target setting, local project management, etc.
o The third tier of topics includes compliance-driven matters and emerging topics.
These topics are to be addressed through compliance, monitoring and ongoing
management.
• Interdependence of topics: Material topics do not exist independently; they are linked
to one another and their position on the matrix should be understood accordingly. For
instance:
o There is high level of interconnection between environmental issues, most of them
being located in the first tier. While water stewardship is thus located lower within
this first tier, it is closely linked to climate change – which is among Danone’s most
material issues. Similarly, sustainable farming and land use, which remains at the
very top of the matrix in 2021, also very much depends on rural/farmer
development, located further down within the first tier.
o This interdependency also applies to health issues. While product safety and quality
and the nutritional value of Danone’s product portfolio are, similarly to 2017,
considered as most important, they cannot be addressed in isolation. Indeed, they
very much depend on new consumer-related issues (new consumption patterns,
consumer behaviour change), which are what Danone’s business success will
ultimately depend on.
Exploring the interdependence of these topics helps us identify the necessary system-wide
approaches to put in place in order to drive progress on our One Planet. One Health frame of action.
• Materiality of single-axis topics: It is also important to highlight that some topics may
be crucial only externally (to stakeholders) or only internally (to business success). As a
consequence, Danone considers them as key, and they are addressed strategically even
though they may not be located in the first tier of the matrix.
ANALYSING THEMATERIALITY RESULTS
• Our most material issues in 2021: Two major issue themes emerge from the top tier of
the matrix: health and the planet. These are very much aligned with our One Planet.One Health frame of action and stand as further evidence of our responsibility in
addressing these as a priority. In addition to these key pillars, two other topics stand
out in the first tier: integration of sustainability into the business, and responsible
procurement and supply chain management. These topics are strategic enablers that
prove to be essential in driving progress. Indeed, action on key planet and health issues
calls for business transformation and, consequently, further integration of sustainability
into the business, at product and category level. At the same time, acting on those
topics requires deep sustainability integration at the procurement / supply chain
management level.
• What has changed since 2017: While a few planet issues (circular economy, sustainable
farming and land use) were already highlighted as important in 2017, they have been
joined by multiple other issues: climate change, water stewardship, and local sourcing
and rural development have indeed jumped to the first tier since our last materiality
assessment. Although located in the second tier, other planet issues have also gained
importance – including biodiversity protection and regeneration. This reminds us of our
ever-growing responsibility to set the bar high in our One Planet agenda. Meanwhile,
our One Health agenda is proving more relevant than ever, with a new set of consumer-
related issues (new consumption patterns, consumer behaviour change) joining our
pre-existing health priorities (product safety and quality, nutritional quality of overall
product portfolio, food and water access and affordability) in 2021.
• What to expect in the next 5-10 years: Consistent with the evolution which has taken
place since 2017, environmental issues are expected to gain the most traction in the
next 5 to 10 years. While sustainable farming and land use, circular economy and
climate change are thus expected to continue their rise to the top of the agenda, other
environmental issues will also gain ground (water stewardship, biodiversity protection
and regeneration, and food loss & waste).When it comes to health, consumer-related
issues are expected to grow in importance in the next 5-10 years, with rising
expectations for Danone to show the way through new offerings, consumer education
and the promotion of healthier and more sustainable alternatives.
LEVERAGING THE MATERIALITY RESULTS
The materiality results are communicated and spread within Danone in order to activate the One
Planet. One Health frame of action across our businesses. The core purpose of this materiality
analysis is thus to provide guidance for us to better prioritize sustainable strategic topics, to better
meet stakeholder expectations and to better implement commitments and policies towards a
sustainable business and society.
In addition to an overview of the global landscape, this year’s materiality assessment was taken to
the next level to enable a deeper understanding of regional trends as well as expectations towards
each of our business lines. This thorough process, beyond its highly strategic nature at corporate
level, allows us to capture actionable insights and to formulate tailored recommendations at local
and category level.Action on public health issues Animal health and welfare Biodiversity protection and
through specialised portfolio regeneration
• Addressing malnutrition and • Animal health (e.g. use of antibiotics, • Plant and seeds biodiversity
undernutrition etc.) • Species extinction
• Addressing nutritional deficiencies • Animal welfare (e.g. adherence to • Soil & nutrient depletion
• Supporting kids and infant health best practice standards) • Insect pollination in agricultural crops
• Supporting ageing / fragile • Animal testing • Ecosystem regeneration
populations, patients care and
recovery, through immunity
protection
• Supporting specific medical
conditions (allergies, epilepsy…)
• Supporting maternal health
• Addressing mental health
Business ethics and integrity Brand activism Climate change
• Anti-bribery, fraud and corruption • Brand activism / advocacy for • Air pollution
• Anti-counterfeiting progressive causes • Climate partnerships & advocacy
• Anti-trust / Anti-competitive • Brand engagement with consumers • GHG emissions from agricultural and
behavior • Brand partnerships with NGOs and food production value chain
• Compliance other civil society organisations • GHG emissions from transportation
• Protection of intellectual property • Energy efficiency
• Renewable energy
• Carbon offsetting
• Carbon capture and sequestration
• Climate-friendly technologies (e.g.
phasing-out HFC gas)
• Climate-friendly science-driven
ISSUES solutions (e.g., food complements to
reduce methane emissions
NAMES
Circular economy, packaging and Consumer behaviour change Corporate advocacy on public policy,
& waste stakeholder engagement and
partnerships
• Single-use plastic packaging waste • Consumer education on healthier • Responsibility and transparency on
SUB- • Returnable, reusable, and lifestyles and diets public policy / advocacy activities
refillable packaging (i.e. new • Partnerships with local authorities • Stakeholder listening and dialogue
TOPICS business models like Loop) and groups (sports, etc.) to (incl. with critics)
• Biodegradable/bio-based encourage healthier lifestyles • Multi-stakeholder coalitions (e.g. One
packaging • Partnerships with retailers to offer Planet Business for Biodiversity
• Recycled content in packaging better choices to consumers, [OP2B], Business for Inclusive Growth
• Recyclability of packaging through promotion of healthier [B4IG], etc.)
• Collection of packaging (e.g. options • Collaboration with the public sector
deposit return schemes) (e.g. national governments,
• Reduction of fossil fuel use in international organisations)
packaging • Partnerships along value chain (e.g.
suppliers, customers, business
partners)
Data security and privacy Deforestation Employee engagement in governance
• Protection of data against • Zero deforestation (incl. palm oil • Inclusive governance (employee
malicious attacks and improper sourcing) participation in company decisions)
use, i.e. cybersecurity • Employee accessibility to financial
• Responsible / compliant lifecycle ownership (e.g. company shares)
management of data privacy • Employee engagement opportunities /
• Rights of data subjects & programmes
information self-determinationEmployee security, health, safety Food and water access and Food loss and food waste
and wellness affordability
• Occupational health & safety (zero • Affordable price of nutritional • Food loss at agricultural level
accidents) products • Food loss at manufacturing level
• Employee mental health & • Availability of nutritional products • Food waste at retail level
wellbeing (incl. work-life balance) (incl. in most disadvantaged • Food waste at consumer use level
• Employee physical health and non- communities)
communicable diseases (e.g. • Affordability of life-essential
cancer, diabetes, obesity, etc.) products (e.g. water, infant formula)
• Employee security (e.g. external) • Access to safe drinking water in
communities
Fair relationships and pricing with Fair working conditions and wages Human rights in supply chain
farmers
• Stable, long-lasting partnerships • Living wage • Child labour
with farmers • Working hours • Forced labour / modern slavery
• Fair remuneration / shared value • Working conditions • Informal labour in the value chain (e.g.
with farmers • Access to basic services waste pickers)
• Ongoing technical support / • Temporary workers
knowledge transfer (esp. to • Indigenous people’s rights against land
smallholder farmers) grabbing and to freedom of association
• Migrant workers & trafficking
• Sexual exploitation
Integration of sustainability into Labour relations Local sourcing and rural / farmer
the business (incl. B Corp and development
Entreprise à Mission)
ISSUES
• Integrating sustainability priorities • Social dialogue • Sourcing of locally produced raw
and principles in the company's • Grievance procedures and materials / local origins
NAMES corporate governance (e.g. whistleblowing mechanisms • Respect to cultural / local farming
Entreprise à Mission) • Management of layoffs practices
& • Creating sustainable business • Freedom of association & collective • Making farming more attractive to
models aligning profits with social bargaining young people
/ environmental goals (e.g. B Corp • Improving farm economics and
SUB- certification) capacity among farmers
• Measuring / rewarding sustainable
TOPICS performance and impact
New consumption patterns and Nutritional quality of overall product Product traceability and labelling
planetary diet portfolio
• Encouraging flexitarian diets vs • Reducing sugars, sodium, and fat • Product traceability (e.g.
pure meat-based / dairy-based content provenance of ingredients,
• Providing a diverse product • Reducing ultra-processed foods conditions of production)
portfolio in line with local • Optimizing portion sizes
• Transparency over ingredients in
consumer diets and cultural • Encouraging healthy hydration
products (e.g. GMOs, colorants
preferences (water over other types of drinks)
and flavourings, allergens, etc.)
• Being suitable to consumers with • Creating plant-based alternatives to
different religion-induced diets existing products
• Nutritional labelling (e.g. Nutri-
Score in Europe)
• Environmental footprint / impact
labelling
Product safety and quality Responsible leadership and Responsible management of the
governance Future of Work
• Food safety risks management • Internal controls and auditing • Protecting gig economy workers (e.g.
(accountability and governance) • Board composition, independence, temporary, flexible, freelance, and
• Food safety standards and audits / and effectiveness Uber-like jobs)
certifications • Executive compensation • Managing / anticipating the impact of
• Product authenticity • Roles and responsibilities of automation on the company’s own
• Additives, preservatives, artificial Chairman vs CEO operations
ingredients • Succession planning • Managing / anticipating the impact of
• Performance management automation across the supply chain• Pesticides in consumer foods and • Transparency and accountability to
beverages stakeholders
• Chemical compounds in packaging
Responsible marketing Responsible procurement and supply Sustainable farming and land use
chain management
• Marketing to children • Supply chain management and • Transition to organic farming
• Marketing to other vulnerable procurement procedures • Adoption of agro-ecology practices
groups • Supplier payment terms • Soil health protection, fertility
ISSUES • Infant formula / breast milk • Supplier capacity building / training conservation and restoration
substitutes (BMS) ethics and programmes • Support to farmers in their transition
NAMES marketing • Collaboration / co-innovation with to more sustainable farming
• Responsible use of nutritional and suppliers
& health claims
Talent attraction, retention and Tax and local economic development Water stewardship (incl. bottled
SUB- growth water)
• Employee remuneration • Fair and transparent tax contribution • Water quality
TOPICS • Pension & social security • Local job creation • Water discharge / pollution reduction
• Employee training & learning / • Payment, financial and in-kind • Water use in agriculture
career development support to suppliers • Water abstracted for production of
• Talent management & succession • New ventures / acquisitions bottled-water products
planning • Contribution to and promotion of • Natural water resources protection,
• Maternity & paternity protection local development, around through watershed conservation
(e.g. parental leave policy) production sites • Conflict and competition over water
resources
Workplace diversity and inclusion Vulnerable communities’
empowerment in value chain
• Gender diversity/inclusion • Supporting smallholder farmers by
• Racial diversity/inclusion providing equipment and training in
• Sexual orientation (LGBTQI+) sustainable and regenerative
diversity/inclusion practices, or by providing stable
• Disability diversity/inclusion contracts
• Age diversity/inclusion • Helping vulnerable populations (e.g.
• Other forms of diversity/inclusion women from underprivileged areas)
become micro-distribution
entrepreneurs
• Helping waste pickers to improve
their working conditions, wages,
social protection
• Supporting and empowering
caregivers, through training,
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