A unique way to create and share value. Emmanuel FABER

Transcription

1 A unique way to create and share value Emmanuel FABER

2 Right to Food: a UN priority J. Diouf, MD, FAO (UN Food and Agriculture Organization) O. De Schutter, UN Commissioner on Right to Food Nov, 17th, 2009: Rome, UN Summit attended by 50 governments >1Bn people suffering under-nutrition, +25% in 10 years Food production and consumption models are not sustainable A result of public policies in developed countries Penalizing WTO agreements, leading to massive low priced agricultural exports to emerging nations Mass rural exodus and exponential growth of suburban townships Subsistence agriculture in rural regions Food riots will increase, with World Food Programme being cut by 50% in 2009

3 Right to Food: a UN priority UN + FAO recommendations: Create a broader World Food Safety Council, to manage the $20bn aid announced by last G8 meeting Ensure Right to Food is implemented as a basic human right Engage directly populations (vs governments) in this process Localize guidance and consensus on agricultural policies Modify intellectual property rights policies on seeds and processes Biodiversity protection is critical Traditional agricultural practices need to be protected and focus on supporting small farmers

4 The frontiers of the company do not stop at the factory gates How can a company expect to thrive in an economic and social desert? Antoine Riboud (1972) Franck Riboud (2009)

5 Unique GOVERNANCE to monitor economic and social performance Shareholders fully involved from the beginning All employees rewarded according to their ECONOMIC and SOCIAL performance Governance tools: Dec 2006: a 3rd special governance body, the Social Responsibility Committee, is created at board level Social Innovation Committee Specific third party governance established for each of the 4 social platforms

6 Danone: Unique Mission DANONE INSTITUTE DANONE COMMUNITIES MISSION: Educate on the positive link between Health and Diet STRATEGY: No-profit, Independently: Research/Training/Education TARGETS: Health & nutrition, education & well being HEALTH 4 ALL MISSION: Support & Finance social businesses STRATEGY: Equity investment TARGETS: Malnutrition & Poverty ECO- SYSTEM PEOPLE NATURE DANONE FUND for NATURE MISSION: Reinforce Danone Ecosystem of Stakeholders STRATEGY: Endowment fund TARGETS: Employment/ Skills & Employability/ Economic Transition MISSION: Offset Danone footprint STRATEGY: CO2 compensation TARGETS: Nature & Agriculture

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8 Health: Danone Institute Danone Institutes Our platform to position Danone as a contributor to public health Origins 1991: founded as worldwide network of non-profit independent organizations Mission To advance the understanding of links between food, nutrition and health Main focus Dialogue with governments and KOLs on health and nutrition policies Build advanced scientific knowledge by support to research Share knowledge through scientific conferences, publications, training to professionals Educate the general public through programmes tailored to local cultures and issues

9 Health: Danone Institute Danone Institute: independent functioning Governance Scientific Council: 6 to 25 members representative of the local scientific community in terms of expertise and scientific thinking Board: 5 to 8 members, independent experts in nutrition science and business leaders from Danone. Chaired by an independent scientist and honorary members, active in fields related to the Institute's focus. All members are selected from the local scientific community; they work in major hospitals, universities or research centers. Facts & Figures 17 institutes worldwide ; Sponsored >800 research projects and distributed > 13 mln research support Published 77 books 176 scientific conferences and professional training programs organized reaching scientists and professionals Set up >60 continuing education programs for the general public

10 Health: Danone Institute Danone Institute China: an example of strong Health impact project Objective To assess the impact of a fortified supplement used as a home-level fortification to improve nutritional status and development of infants and young children in rural China Design Anthropometric & Anemia data collected during 24 months ( ) in 5 poor counties in Guansu Follow up study conducted 1 to 4 years after completion of food supplementation ( ) Results Anemia prevalence reduced by 45% 1,3cm greater length increment vs control 1,7-3,4 pts higher DQ score vs control Follow-Up study 3,1-4,5 pts higher IQ score vs control Fortified supplement being administrated in pilot counties and earthquake area since

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12 danone.communities Governance Franck Riboud, CHAIRMAN Muhammad Yunnus, VICE- CHAIRMAN Founder of the Grameen Bank and awarded the Nobel Prize in 2006 Jacques Bungert co-chairman of Young & Rubicam France Xolchilt Galvez Member of Nahuati nation, she s a businesswoman comitted to supporting communities in need and an active member of Fundacion Porvenir Jay Naidoo S African trade union pioneer, he served different roles in the first government of Nelson Mandela; he s the chairman of GAIN Maria Nowak «The banker for those in need» and founder of ADIE, the Association for the Right to Economic Initiative, in France (1989) Emmanuel Faber Gary Hirschberg Founder of Stonyfield Farm, he embodies a successful militant business model based on environmental responsibility George Pauget CEO of Crédit Agricole, which also manages the DC s investment fund Jean-Michel Severino One of the world s leading experts on developing Economies, since 2001, he has been head of the French Development Agency Zinedine Zidane Devotes his time and name to causes dedicated to the welfare of children; since 2001 he has been a UN Goodwill Ambassador for development

13 Danone People: Danone Ecosystem

14 Danone People: Danone Ecosystem Danone Ecosystem Scope MASS RETAIL Fund s target SHAREHOLDERS Other Suppliers Milk Producers/ Farmers Distributors DANONE Subcontractors UNIONS/ EMPLOYEES CONSUMERS Territories & Local authorities Transports & Logistics KOL/MEDIA All stakeholders whose activities are impacted by Danone and who act closely with its local subsidiaries from an economic, social and territorial point of view

15 Danone People: Danone Ecosystem Danone Ecosystem Governance SUPERVISORY COMMITTEE RECOMMANDATION BOARD OF DIRECTORS Investment Committee MANAGEMENT AGREEMENT Banking Structure

16 Danone Ecosystem Governance Franck Riboud, CHAIRMAN Pascal Lamy, VICE-CHAIRMAN WTO Director General Martin Hirsch, VICE-CHAIRMAN France High Commissioner for active solidarity against poverty Gaby Bonnand CFDT trade union National Secretary Esther Duflo MIT Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics and a founder of the Poverty Action Lab (J-PAL) Emmanuel Faber Lourdes Arizpe Former Director General for Culture at UNESCO ( ), she presently chairs the UNRISD Board (United Nations Research Institute for Social Development). William Drayton Founder &CEO of Ashoka network of social entrepreneurs Named as one of America's 25 Best Leaders in 2005 Bernard Hours Ron Oswald General secretary of the IUF (International Union of Food workers) Muriel Penicaud Executive VP Human Resources Danone

17 NATURE is part of DANONE s Mission Danone Fund for Nature

18 Danone Fund for Nature Danone is committed since 2000 Precise objectives to reduce natural resources consumption on a 10-years horizon were established by Danone Executive Committee in September 2001: 20% reduction in energy consumption, 30% reduction in water consumption 80% of waste recovered

19 Danone Fund for Nature NATURE objectives going forward 1 GROUP Objectives by end 2011 Reduce CO 2 emissions by 30% (internal target) 7.4 One of the best of FMCG Achieve carbon neutrality on EVIAN brand

20 Danone Fund for Nature WATER OFFSET: EVIAN & RAMSAR An innovative partnership A unique initiative DANONE FUND FOR NATURE Expertise in water resource management Financial investment Catalyst and driving force Wetlands expertise Inter-governmental alliance Credibility Expertise in biodiversity Operational implementation Credibility Evian-Ramsar Partnership to Restore wetlands, => restore bio-diversity Carbon absorption Re-starts! Local socioeconomic benefit e.g. fishing, tourism Evian protects water communities

21 Danone Fund for Nature DAIRY OFFSET: Sustainable agriculture Farm Greening Agropastoralism Crop Management Cow feeding Biomethanisation Nourish soil Nourish Animals Nourish Humans

22 A few take aways Food is NOT an industry like any other Sharing value creation is critical, beyond the traditional boundaries of CSR Social performance is at the heart of Danone s mission It is embedded in our strategy, execution and governance This integrated approach of our business is part of our company and our people uniqueness This is the Danone Way of delivering long lasting satisfactory value to our shareholders