THE DANNON COMPANY

THE DANNON COMPANY
Sustainable Development Report
Strategic Initiatives 2014
“
In 2014, Dannon remained committed to bringing
health to the greatest number of people through its
great-tasting yogurt and other dairy products. The
mission comes to life more than ever before in our
ambition to have Americans eat one yogurt every
day, while also integrating social and economic
objectives in daily activities.
”
— Mariano Lozano, President and CEO,
The Dannon Company
Table Of Contents
4
DANNON'S MISSION
5
ABOUT DANNON
6
DANNON'S VALUE – HOPE
7
8-9
10-12
DANNON'S LEADERSHIP MODEL - CODE
DANNON'S SUSTAINABLE DEVELOPMENT
FOCUS AREAS AND TIMELINE
HEALTH AND NUTRITION
13-14 FOR ALL
15-16 PEOPLE
17-19 NATURE
20 LOOKING AHEAD - DANONE 2020
What's New For 2014
Health and Nutrition
Dannon announced a landmark commitment to the Partnership for a
Healthier America (PHA) to further improve the nutrition profile of its
yogurt products by 2016.
For All
Dannon continued to support the communities in which it operates, by
investing in nutrition-related initiatives and education programs.
People
Dannon mobilized its employees in educating their communities on the
health benefits of eating "One Yogurt Every Day" while also encouraging
employees' own health and wellness.
Nature
Dannon’s first direct dairy farm partner, McCarty Family Farms, received
the 2014 U.S. Dairy Sustainability Award from The Innovation Center for
U.S. Dairy.
3
DANNON'S MISSION
Bringing health
through food to
as many people
as possible.
Dannon shares this mission with its
parent company, Danone. The Danone
family of companies is involved in
innovative projects in North America and
around the world that fulfill our dual focus
on economic and social progress.
For more information about our global commitment,
please visit: www.danone.com
ABOUT DANNON
Headquartered in White Plains, New York,
Dannon manufactures its products in
Minster, Ohio; Fort Worth, Texas; West Jordan,
Utah and Portland, Oregon. Employing more than
1,400 people, Dannon produces and sells more
than 200 different types of flavors, styles and sizes
of cultured fresh and frozen dairy products.
The tremendous variety of cultured dairy
products Dannon makes supports its
ambition to bring health through food to
as many people as possible.
Dannon’s mission inspires the company
to integrate both economic and social
goals into what it does each
and every day.
DANNON'S VALUES – HOPE
These values are ethical principles that guide the way Dannon behaves every
day, the way we work and progresses in our business, the way we make
contact, the way we buy and sell products and the way we recruit our team.
HUMANISM
OPENNESS
• Sharing and respect for others
• Attention to individuals, whether
they’re consumers, colleagues or
fellow citizens, is at the heart of
its decisions
• Curiosity, awareness, imagination
and refusal of prejudice
• Agility, speed and adaptability
PROXIMITY
ENTHUSIASM
• Accessible and approachable
• The willingness to reach out to
consumers, customers and
suppliers to build ties beyond
buying and selling
• Boldness, passion and appetite
for challenge
• Eagerness for growing
and taking the lead
6
DANNON’S LEADERSHIP MODEL – CODE
As part of Danone's worldwide initiative, Dannon trains our employees with a common
leadership model – CODE. Through CODE, we constantly strive to maintain an open and
dynamic work/life culture and encourage that entrepreneurial spirit in every business
endeavor. The Danone Leadership CODE is based on four key principles:
C O
COMMITTED
• Inspire and “be” the vision
• Commit to create breakthrough results
D
Doer
• Take responsibility and risk to show the way
forward
• Act with speed, agility, and pragmatism
oPeN
• Listen with empathy and talk straight
• Connect inside and outside
E
EMPOWERED
• Engage and align teams
• Coach and harness diverse talent
7
DANNON’S KEY SUSTAINABLE DEVELOPMENT FOCUS AREAS
Dannon's mission and operations are rooted in four Sustainable Development
areas and we lead with our hearts as well as our heads.
HEALTH AND NUTRITION
Dannon believes that people who choose to
eat nutritious, great-tasting foods are helping
contribute to a sustainable and healthy lifestyle.
The company is committed to making healthy
and enjoyable food.
FOR ALL
Dannon believes that yogurt, as a nutrient rich
food, is always a good value. Dannon is
committed to creating affordable, delicious and
better-for-you products for its consumers.
FOR ALL
HEALTH
BRINGING HEALTH
THROUGH FOOD
TO THE LARGEST
NUMBER OF
PEOPLE
NATURE
NATURE
Dannon’s actions to promote health also
involve actions to protect and preserve the
environment. Dannon strives to reduce the
impact of its operations throughout the life
cycle of the foods it makes.
PEOPLE
PEOPLE
Dannon is committed to help all of its employees
have opportunities to grow professionally and
find meaning in their work. The company also
supports its employees’ efforts to help others to
achieve a better life.
8
Sustainable development initiatives are firmly rooted in
the core of Dannon and Danone's history.
9
HEALTH AND NUTRITION
Dannon believes that food and nutrition are essential to building and
sustaining health and well-being. This is the vision on which the company has
built its history.
Dannon's Goal 2016
In 2014, Dannon announced a landmark commitment to the
Partnership for a Healthier America (PHA) to further improve the
nutrition profile of its yogurt products by 2016.
Dannon's pledge is to help make a real difference in how Americans eat. As part of its
commitment, Dannon will improve nutrient density, reduce the amount of sugar and fat in its
products and invest in nutrition education and research focused on healthy eating habits.
Visit www.dannon.com for updates on our progress toward achieving our ambitious goals in partnership with PHA.
10
HEALTH AND NUTRITION
At Dannon, Health and Nutrition are at the heart of our business.
At Dannon we focus not only on producing nutritious, great-tasting foods, but also on helping to
address larger health concerns through our products.
Dannon Research plays a central role in implementing this strategy, with the conviction that diet
and an understanding of its impacts will be key to addressing health issues in the future.
2014 Innovation Proof Point:
Light and Fit Protein Shakes
Excellent source
of Fiber, Protein,
Calcium and
Vitamin D
True to our mission to bring health through
food to as many people as possible, in 2014,
Dannon launched a new product: Light & Fit
Protein Shakes.
This innovative, on-the-go option
demonstrates our commitment to help
consumers find more convenient ways to
make smart and tasty snack choices.
12g of Protein
5g of Fiber
0% Fat per
10 fl oz serving
One of the most
nutrient dense
products in our
portfolio to date
Good
source of
Potassium
11
HEALTH AND NUTRITION
The Dannon Institute - Investing in the careers of future nutrition leaders
In 2014, the Dannon Institute hosted the Mid-Career Nutrition Leadership Institute in Geneva,
Illinois where 16 mid-career nutrition and medical professionals attended an intensive 3-day
training program designed to provide an opportunity for participants to identify and develop
desirable characteristics of senior leaders and explore personal fit for the role of department
chair, division chief or similar role in academic nutrition departments and schools.
Since 1998, the Dannon Institute Nutrition Leadership programs have
provided nearly 250 early and mid-career nutrition professionals
with training designed to provide participants with strategies for
improving their ability to lead as well as unique networking and
mentoring opportunities.
In addition to its investing in
research and leadership, the
Danone Institutes around the
world support various
initiatives aiming at promoting
wholesome food categories as
daily sources of health and
well-being for all.
Danone Institutes International, in cooperation with the American Society of Nutrition, held the 2nd
annual YINI Summit in 2014 with the objective to stimulate research on the effects of yogurt on health
and communicate available scientific information to healthcare professionals and the general public.
At the end of the 2014 YINI Summit attends were able to:
For more information on The Dannon Institute, visit www.dannon-institute.org
12
FOR ALL
Dannon is committed to helping people make informed food choices to improve
their nutrition and health. As part of this commitment, Dannon supports
nutrition education for children in our communities.
Dannon’s support of access to
nutrient-dense foods takes many
forms, including monetary and
product donations to hundreds of
community partners that are
impacting eating habits and diets
in America.
These include local schools and
non-profit organizations with
nutrition eduation and wellness
programs that focus on increased
consumption of lowfat yogurt as
part of a healthy lifestyle for
children in our communities and
across the USA.
In 2014, over 90% of Danoners,
engaged in the One Yogurt Every
Day (OYED) Employee Ambassador
Program, mobilizing our Danoners
in our commitment to help
Americans make better food choices.
OYED Ambassadors hit the streets of
our hometowns to encourage people
of all ages to eat a balanced diet
and live a healthy lifestyle and teach
our communities that eating yogurt
every day is one simple way to help
meet the USDA’s Dietary Guidelines’
recommended 3 servings of low fat
or non fat dairy products daily.
“When the Dannon volunteers were here last June [2014]
and December [2014], both times I thought to myself
that I would love for my own children to work for
such a vibrant organization. The volunteers all
have a positive spirit and enthusiasm that we
look for in our teachers and I have no doubt
working in such a high energy, community
conscious organization must be a captivating
workplace. I have been very impressed by
many aspects of the volunteers but most of all
by their kindness.”
- Edward T. Beglane, Ed.D. Principal, Thomas Cornell Academy, Yonkers NY
13
FOR ALL
For All means being accessible to as many people as possible. To
achieve this ambition, we recognize that the solution will come from
multiple actors. We choose to align with relevant stakeholders and to make a responsible use of
our capacity of connecting to the consumer.
In 2014, Dannon product donations to partner
organizations like the Feeding America network of
food banks and local community organizations
totaled an estimated 8.4 million pounds, providing
the equivalent of more than 5 million healthy meals
for people at risk of hunger. Since our partnership
with Feeding America began in 2000, Dannon has donated over 53 million pounds
of our nutrient dense foods that are in high demands at food banks, helping to
provide nutritious snacks to those who otherwise would not have had access.
Additionally in 2014, Dannon built on its commitment to bring health
through delicious food to as many people as possible through a key
partnership with the American Diabetes Association.
For more information on the Dannon® Light & Fit® Nonfat Yogurt and the American
Diabetes Association sponsorship, visit www.lightandfit.com/living-with-diabetes
14
PEOPLE
Dannon is a company made up of individuals with an entrepreneurial
spirit. Dannon’s employees are thought leaders, committed to an
ambitious future, open to learning and sharing with others and doers
who deliver fast results by empowering and developing people.
DANNON’S PEOPLE ARE THE KEY TO ITS SUCCESS
In 2014, Dannon launched an innovative new development program to encourage
life-long learning in our Danoners. The Individual Development Plan (IDP) program
introduced a new Learning Model of 60/20/10/10.
Dannon depends on the
professional and personal
development of its employees in
all areas. Employees are
encouraged to develop their skills
and knowledge through formal
training or self-initated study.
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15
PEOPLE
Dannon’s commitment to health
resonates throughout our Danoners who
got fit and active in 2014 with the
Danone North America FitBit Challenge.
For 5 months in 2014, Danoners
across all locations in North America
logged their steps as teams and
encouraged each other to embrace
healthy lifestyles. In total, more
than 420 million steps were logged
by our Danoners.
NATURE - OUR COMMITMENT
What we do is
as important as
how we do it
A commitment to nature is vital to Dannon’s mission of
bringing health through food to the greatest number
of people. Dannon employees contribute to environmental
sustainability progress through decisions made and actions taken every day.
NATURE COMMITMENT
In 2014, Dannon (and Danone) continued to focus its environmental strategic commitments on four priorities:
Fight climate change by reducing footprint and helping
nature sequester more carbon1
Protect water resources, particularly when scarce, and use
them in harmony with local ecosystems and communities
Turn waste into a resource and use packaging materials
from sustainable resources
Promote agriculture that produces healthy food, is
competitive, creates economic and social value, respects
natural ecosystems and generates better nutritional balance
1. Note: Keeping carbon in soil and forests (or returning it to these forms of storage)
creates a crucial supply of carbon, which will help meet the growing demands on the
planet and conserve this valuable resource for future generations.
2014 Nature Highlight
In 2014, Dannon’s partner in a unique and innovative
direct sourcing partnership, McCarty Family Farms,
received the 2014 U.S. Dairy Sustainability Award
from The Innovation Center for U.S. Dairy.
Key Parternship Benefits
Water Conservation via Condensed Milk Processing Plant
Enables water to be used in other applications, such as cleaning and feeding cows and irrigating
crops. Each day, the processing plant extracts 39,000 gallons of water from milk.
75% fewer trucks are used to transport the finished product.
Investment in Employees + Commitment to Community
Investment in their employees, their familiies, housing infrastructure and employee benefits
to support their team members - cultivating a sense of community.
Reinvigorated local schools through an innovative dairy donation program.
Economic Stability
More economically stable business model = reduces price swings.
More predictable budget forecast = opportunity to invest in the community (as noted above).
17
NATURE - OUR IMPACT
Each year since 2008, Dannon has conducted a Carbon Footprint Analysis to further
understand the CO2 breakdown of carbon generated during the life cycle of our fresh dairy
products. In 2014, Dannon began reporting its carbon footprint through its new SAP
carbon footprint software -- enabling the company to analyze greenhouse gas emissions of
our products from cow to cup in real time. The 2014 results, using our Danone SAP carbon
footprint software, indicated the following1:
2014 FOOTPRINT
OF A CUP OF
YOGURT
1. Analysis is a full scope carbon footprint analysis (including all stages of life cycle). Data is based on the Danone SAP carbon
footprinting tool's 2014 results.
INITIATIVES THROUGHOUT THE LIFECYCLE OF A YOGURT
Reduce/
Reuse
Each of Dannon's facilities provides nutritious by-products to local farms for use as animal feed. By-product
from Dannon's waste water treatment plant at Minster, Ohio is used as fertilizer.
In 2013 and 2014, each of Dannon's manufacturing facilities created an energy and utility team to drive
improvements in environmental initiatives and create detailed action plans to reduce energy and water usage.
Packaging
Our packaging partner, Graham, is located inside and adjacent to our Minster, Ohio and West Jordan, Utah
plants, removing the need to transport empty bottles and cutting carbon emissions from fuel consumption.
Transportation/Distribution
In 2014, Dannon shipped 50+ loads via intermodal (train) cross country taking trucks off the road. Dannon
aims to grow the use of train transportation in 2015. Train transport represents fewer vehicles on the road.
Additionally, a train emits six times less CO2 than regular trucks.
In 2014, Dannon began shipping direct from our Fort Worth facility, sourcing closer to customers
versus from Utah and Ohio, reducing miles traveled by 634,000 and using 100,000 less gallons of fuel.
Product Consumption/End of Life
In 2014, Dannon donated an estimated 8.4 million pounds of fresh dairy products through the Feeding
America network of food banks to help feed hungry families and transform unused product into a valuable
resource.
18
NATURE 2020: NATURE AT THE HEART OF THE FOOD CHAIN
Building upon its strong
committment to nature and its
original 10 year Nature Plan (see
pg. 9 for details), in 2014
Danone selected four
environmental priorities for its
2020 ambitions and operational
initiatives:
Climate, Water, Packaging
and Agriculture
Nature 2020 is embedded in Danone 2020
(see pg. 20 for information on Danone 2020).
For the Nature 2020 overview video and
detailed dashboard of Danone's Nature
2020 objectives visit www.danone.com
19
The first five years of the
journey towards strong,
profitable and sustainable
growth for Danone
As a core part of the roadmap to strengthen the economic and social impact of
Danone's growth and engage Danone’s 100,000 employees in its dual commitment
for profitable and sustainable growth, "Danone 2020" launched in 2015.
Through an innovative, broad co-creation and company-wide deployment process of
"Danone 2020", this business transformation program is designed for a sustainable,
collaborative and community-engaging future that is focused on three streams:
Alimentation, Food & Water Cycle, People & Organization.
ALIMENTATION
Beyond selling food
and beverage products
We want to create healthier
eating and drinking behaviours,
that nourish and satisfy
individuals and socially and
culturally bring people together.
For more information about Danone 2020
visit www.danone.com
FOOD & WATER
CYCLE
PEOPLE &
ORGANIZATION
Beyond buying
materials
Beyond traditional
structure and process
We want to protect and
valorize the essential
resources of the planet, in
collaboration with
communities.
We want to be agile, open
and collaborative; and we
want diverse people to
flourish here.
20
“
The Dannon Company, Inc.
100 Hillside Avenue
White Plains, NY 10603
www.dannon.com
The role and responsibility of a business
leader will be judged on two criteria: meeting
business targets for shareholders and
meeting targets for human and social
progress for employees… We must lead our
companies with our hearts as much as our
heads, and never forget that unlike energy
resources, which are limited, our
people are a source of infinite power
once they feel motivated.
”
— antoine riboud, Co-founder,
Danone, 1972