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Global Index 2018

Danone

Corporate Profile

Rank
3
Score
4.9
1 (2013)

Corporate Profile

A Governance (12.5%)
6.5
B Products (25%)
5.3
C Accessibility (20%)
4.8
D Marketing (20%)
8.5
E Lifestyles (2.5%)
3.9
F Labeling (15%)
4.7
G Engagement (5%)
6.2
Highest score among rated companies
The percentages in parentheses indicate the weight assigned to each Category
Headquarters
France
Market capitalization
$39,387 m
# of employees
99,927
Total revenues*
$25,593 m
Reported product categories
Baby Food; Dairy; Water and Beverages; Medical Nutrition
Reported revenue by geography**
Asia-Pacific / Latin America / Middle East / Africa 38%, Europe 30%, CIS & North America 21%, France 9%
* Source: Capital IQ, USD exchange rate as of 31 Dec 2014 ** Source: Capital IQ

Nutrition general

3
5.9

Undernutrition

3
3.7

BMS

2
3.1

Corporate Profile

  • Governance

    Overall scores
    Rank 3
    Score6.523
    Scores per criterion
    Criterion Absolute score Weighted score
    Strategy 6.391 2.128203
    Management 5.991 1.995003
    Reporting 7.187 2.393271
    Average scores
    Lowest 0
    Average 3.5622272727273
    Highest 8.731
  • Products

    Overall scores
    Rank 4
    Score5.308
    Scores per criterion
    Criterion Absolute score Weighted score
    Formulation 3.949 1.9745
    Profiling 6.667 3.3335
    Average scores
    Lowest 0
    Average 2.7987727272727
    Highest 8.427
  • Accessibility

    Overall scores
    Rank 2
    Score4.819
    Scores per criterion
    Criterion Absolute score Weighted score
    Pricing 5.145 2.5725
    Distribution 4.492 2.246
    Average scores
    Lowest 0
    Average 1.1542272727273
    Highest 6.68
  • Marketing

    Overall scores
    Rank 1
    Score8.539
    Scores per criterion
    Criterion Absolute score Weighted score
    Policy (all) 9 2.25
    Compliance (all) 10 2.5
    Policy (children) 7.655 1.91375
    Compliance (children) 7.5 1.875
    Average scores
    Lowest 0
    Average 3.7889090909091
    Highest 8.539
  • Lifestyles

    Overall scores
    Rank 6
    Score3.903
    Scores per criterion
    Criterion Absolute score Weighted score
    Employees 5.25 1.74825
    Breastfeeding 4.922 1.639026
    Consumers 1.537 0.511821
    Average scores
    Lowest 0
    Average 2.4945
    Highest 7.072
  • Labeling

    Overall scores
    Rank 4
    Score4.698
    Scores per criterion
    Criterion Absolute score Weighted score
    Facts 7.081 3.5405
    Claims 2.314 1.157
    Average scores
    Lowest 0
    Average 2.3608181818182
    Highest 6.22
  • Engagement

    Overall scores
    Rank 1
    Score6.25
    Scores per criterion
    Criterion Absolute score Weighted score
    Lobbying 6.563 3.2815
    Stakeholder 5.938 2.969
    Average scores
    Lowest 0
    Average 2.7793636363636
    Highest 6.25

Areas of strength

- Danone clearly demonstrates how a company can contribute to preventing and addressing obesity and diet-related chronic diseases and undernutrition. Nutrition-related commitments are fundamentally embedded into Danone’s business objectives and strategic thinking, and are augmented by strong philanthropic initiatives.
- The company’s annual sustainability report covers global nutrition-related initiatives and is externally verified, a new development since the 2013 Global Index and is considered to be best practice.
- The company makes significant efforts to address nutrition issues through its commercial portfolio. Consideration of local dietary needs and potential nutrient deficiencies are included in market research assessments and supported by targeted product reformulation as well as follow-up studies to assess efficacy.
- Danone scored well on several affordability-related indicators that were included in the 2016 Global Index. Each of the company’s product categories includes healthy variants affordable to low-income populations via coupons, discounts or smaller product sizes. Moreover, these affordability efforts extend to several fortified products designed to target undernourished, low-income consumers.
- During the 2013 Global Index research process, Danone conducted an evaluation of its employee health and wellness program and has since reported the results. An independent academic group has also evaluated the company’s program, focusing on participation rates and employee attitude shifts toward health and wellness.
- Danone’s maternity leave policies differ by geography, but are generally robust and cover key issues well.
- The company has a track record of successful commercial initiatives and philanthropic projects targeting nutrient deficiencies in low-income demographics.

Areas for improvement

- At the time of assessment, Danone was in a period of transition between strategic planning cycles. The company was developing its Danone 2020 plan, which is expected to include financial and R&D targets, as well as a revision of strategic business commitments. It is possible that the gaps present in Danone’s disclosure can be attributed to the timing of the 2016 Global Index assessment taking place prior to the company’s publication of the updated business plan. However this has led to a decrease in ranking from the first place in 2013 to the third place in the second index.
- Danone does not have comprehensive forward-looking targets relating to reducing or increasing key nutrients in its product portfolio. Forward-looking targets related to employee participation in wellness programs are also absent, despite that participation rates and other metrics appear to be routinely tracked.
- Although Danone has nutrition-related initiatives in many developing countries, it does not make a specific commitment to focus its undernutrition efforts in developing countries of highest priority.
- Danone only advertises its healthy products to children under-12. Danone improved its threshold for programs with a child audience limit to 35% for all regions. This could be further improved by reducing the child audience threshold limit to 25%.
- As also recommended in 2013, Danone could improve its disclosure by publishing its policy on nutrition labeling for fortified foods.
- Danone ranked the second on the breast-milk substitutes (BMS) sub-ranking. While its policy commitments align reasonably strongly with The International Code of Marketing of Breast-milk Substitutes (The Code) and subsequent World Health Assembly (WHA), they are not applied to all products in all markets. In both Vietnam and Indonesia, multiple observations of non-compliance with The Code were made.

Improving nutrition for all

The Access to Nutrition Index rates food and beverage manufacturers´ nutrition-related policies, practices and disclosures worldwide on a recurring basis.

Contact

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Funders

Bill & Melinda Gates Foundation

Ministry of Foreign Affairs

Robert Wood Johnson Foundation

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