Commitment and Governance
Danone discloses that compliance with its RESPECT program (which is based on principles such as the prohibition of forced labor in supply chains) is monitored by the Nature and Cycles Sustainability team, which reports to the Strategic Resources Cycles steering committee. It discloses that procurement staff is involved in following up on non-compliances found during social audits. In addition, the company discloses it has selected 89 ambassadors for its RESPECT program to help drive the culture and train buyers internally on the topic of supplier responsibility. Danone discloses that buyers who manage supplier compliance are routinely trained on the RESPECT program. The company discloses that 84% of its subsidiaries have also implemented this training for its buyers. In addition, Danone states that it is a member of The Consumer Goods Forum, working "via the Social Sustainability Committee" towards implementing the initiative's resolution on forced labor.
Danone discloses that, at the end of 2016, it undertook a CSR risk assessment across 20 of its purchasing categories. The assessment was based on internationally recognized standards, including SA8000 and GRI G4, and had a strong focus on forced labor issues. It further details that, together with "stakeholder expectations," the resulting risk matrix led the company to prioritize commodities and services to further improve traceability and respect for human rights. Danone states that, based on the human rights risks identified through the above processes, it will focus its attention on workers employed through labor agencies or service providers, and the product categories that include palm oil, cocoa, cane sugar and fruit, noting that "the potential risks brought to light are mainly situated in farms and plantations, upstream in the supply chains."
Danone states it has established a policy to ensure all of the palm oil it purchases is traceable and-among other criteria-"comes from plantations where the rights of all workers are respected." Since 2014, the company has sourced all its palm oil from RSPO-certified sources; it also sources UTZ-certified cocoa. In addition, Danone states it has collaborative projects to support producers regarding their income and working conditions in its strawberry and vanilla supply chains. The company further discloses partnerships with milk producers in France and the United States which cover technical as well as "environmental and societal aspects". The scheme includes a fair pricing model where prices are discussed jointly with producers or their organizations, to offer better visibility and financial stability. Danone discloses that these suppliers which make up for 19% of its milk supply are contractually covered by this pricing scheme.