SOCIAL INNOVATIONS

SOCIAL INNOVATIONS

 

Danone contributes to four funds: Danone Communities, Danone Ecosysteme, Livelihoods Carbon Fund and Livelihoods Fund for Family Farming.

 

Danone Communities aims at fighting against poverty by giving an access to safe drinking water and adapted alimentation to impoverished populations. The fund has been investing in businesses created by innovative social entrepreneurs and enables the local development of products and services impacting the daily life of a million people.

 

The Danone Ecosystem Fund intends to strengthen and develop the activities of the partners who make up Danone’s ecosystem: farmers, suppliers and subcontractors, transport and logistics operators, distributors, territories & local authorities, etc. The Fund carries out actions in employment, skills and employability, and microentrepreneurship.

 

The Livelihoods Carbon Fund supports the efforts of disadvantaged rural communities in developing countries to restore their natural ecosystems so as to improve their livelihoods by increasing their food security and their economic revenues ; contributing to climacte action at the same time.

 

The second fund created by Livelihoods, Livelihoods Fund for Family Farming (L3F), offers companies innovative solutions to build a win-win relationship with small producers. It thus also answer to the challenges of environmental degradation, climate change and rural poverty.

 

 

Key performance indicators of these different funds in 2017 are presented below.

 

 

Social businesses supported by the fund

Danone Communities invested in 10 social businesses, located in 12 different countries, versus 10 in 2016.

MEASURING THE COMMITMENT OF DANONE'S EMPLOYEES

25% 

Danone's employees represent 25% of the Danone Communities fund (versus 23% in 2016).

By the end of 2017, 55% of Danone France employees had suscribed to the FCPE Danone Communities.

Danone employees invested 19.8 M€ in 2017 (versus 16.7 million euros in 2016).

 

SICAV

9.25% 

of the total performance of the SICAV (mutual fund)
The indicator refers to the total performance net of fees over 5 years (versus10.29% in 2016).

SOCIAL

1 million beneficiaries in total


The indicator refers to the total number of the social businesses beneficiaries supported by Danone Communities, in regards to the 12 countries in the Fund (same value in 2016).

 

700,000 beneficiaries with access to drinking water


The indicator refers to the total number of the water access social businesses beneficiaries (same value in 2016) supported by Danone Communities . 

 

300,000 beneficiaries in the fight against malnutrition and poverty 


The indicator refers to the total number of the nutrition social businesses beneficiaries (same value in 2016) supported by Danone Communities.

General

Danone Ecosystem Fund projects

Partners

Total funding

SOCIAL IMPACT

Number of professionally empowered people

This indicator refers to empowerment—a process that enables people to boost their employability and social & economic inclusion. It includes people with increased or secured revenue, people who received a training, people with access to social benefits, people who have benefitted from a micro-credit service, people with better working conditions, people who have benefitted from a social or professional insertion program, people who receive a donation in kind, and people with access to external expertise.

Number of women professionally empowered

This indicator refers to empowerment—a process that enables women to boost their employability and social & economic inclusion. It includes women with increased or secured revenue, women trained, women with access to social benefits, women who have benefitted from a micro-credit service, women with better working conditions, women who have benefitted from a social or professional insertion program, people who received a donation in kind.

Number of indirect beneficiaries

This indicator refers to people receiving an indirect benefit specific to the project (family members benefiting from increased or secured revenue, people made more aware of nutrition, etc.), excluding people professionally empowered.

This indicator refers to the number of potential consumers who heard of or became familiar with Danone product categories (direct beneficiaries of projects and their families)

Impact on nature

Milk from Danone Ecosystem Fund projects vs total sourcing of Danone subsidiaries

This indicator refers to the volume of milk sourced from Danone Ecosystem Funds projects as a percentage of total milk sourced by Danone subsidiaries having a project related to the Fund over the same period.

Tons of PET collected monthly

 

 

The Livelihoods Fund supports the efforts of disadvantaged rural communities in developing countries to restore their natural ecosystems so as to improve their livelihoods by increasing their food security and their economic revenues.

The Livelihoods Carbon Fund is an investment fund created in 2011, which relies on the carbon market to generate maximum social, economic and environmental value for  local communities in Africa, Asia, Latin America, while contributing to make businesses more virtuous.

It invests in three types of projects: mangrove restoration, agroforestry and rural energy. Projects are implemented on the field by local NGOs and monitored for over 10 to 20 years.

NUMBER OF ACTIVE PROJECTS

In the end of 2017, 9 projects were active within the Fund. The different categories of projects are the following: 3 ecosystem restoration projects, 3 agroforestry projects and 3 rural energy projects (same as in 2016).

TOTAL INVESTMENT VOLUME

The Livelihoods Carbon Fund is financed by 10 companies: Groupe Caisse des Dépôts, Crédit Agricole SA, Danone, Firmenich, Hermès, Groupe La Poste, Michelin, Schneider Electric, SAP, Voyageurs du Monde. The objective is to reach 40 million euros of investment.

SOCIAL IMPACT

People positively impacted since 2011

Number of people whose livelihoods are improved thanks to projects' benefits: more resources available (fish, food, cash crops, etc.) and more resilient ecosystems (restoration of agricultural land and forests, barriers against seawater, etc.). The objective is to positively impact 1.2 million people by 2020.

Households equipped with efficient cookstoves since 2011

In addition to mitigating deforestation, efficient cookstoves have direct impacts on women's lives: less exposure to toxic smoke and burns, less time needed for wood collecting and cooking. The objective to reach 120 000 equipped households have been reached in 2017.

ENVIRONMENTAL IMPACT

Trees planted since 2011

In rural communities, people depend on forests' ecosystems for their subsistence. Forest restoration improves their livelihoods (more natural resources available) and has positive impacts on climate change (CO2 sequestration, natural barriers, soil regeneration, etc.). The aim is to plant 130 million trees by 2020.

Hectares restored since 2011

Agroforestry, for example, regenerates lands by improving soil fertility—allowing small farmers to produce enough food and cash crops to improve their livelihoods. The objective set is 47,000 hectares restored by 2020.

Tons of carbon emissions avoided or sequestred since 2014

Trees sequester CO2, thus helping mitigate climate change. The aim is to sequester 10 million tons of CO2 over 20 years, by 2032.

 

 

The Livelihoods Fund for Family Farming (L3F) is the second fund created by Livelihoods. Like the Livelihoods Carbon Fund (LCF), it follows the belief that environmental degradation, climate change and rural poverty are interlinked. Its model provides a solution to address all three challenges at once, linking them to sustainable sourcing.

L3F’s mission is to offer companies innovative solutions to build a win-win relationship with small producers. L3F projects allow farmers to adopt more efficient and more eco-friendly agricultural practices. Farmers are also more efficiently connected to the value chain of companies, improving the incomes of farmers and their living conditions, while securing the supply of businesses. L3F projects generate direct benefits for water and biodiversity preservation but also for the fight against climate change through the sequestration of carbon in the soil.

L3F is supported by Danone, Mars Incorporated, Firmenich and Veolia. L3F will invest in the key raw materials of its investors: milk, vanilla, water conservation (watersheds), cocoa, etc.

This is the first time that performance indicators are reported for the fund.

5 active projects 

In 2017, the Livelihoods Fund for Family Farming has five active projects.

 

6.8 M€ of total investment volume

By the end of 2017, the total investment volume was up to 6.8 million euros. The long term objective is to reach 120 million euros.

 

2,000,000

Objective number of positively impacted people.

 

FARMS CONVERTED TO SUSTAINABLE AGRICULTURAL PRACTICES

80,000 farmers

In 2017, 80 000 farmers were empowered and converted to sustainable agricultural practices. The long term objective is to reach 200,000 farmers.

 

84,000 hectares

By the end of 2017, 84 000 hectares were put under sustainable land management. The long term objective is to reach 200 000 hectares.

 

40,000 farms

By the end of 2017, 40,000 farms were connected to markets or supply chains of investors in the funds. The long term objective is to reach 200,000 farms.