DANONE Actimel Belux Actimel Yogurt Drinks Qualifying Explanatory Statement in support of the Achievement of and Ongoing Commitment to Carbon Neutrality Application Period: 1 st January 2020 to 31 st December 2020. Date: 1 1 th January 2022 Executive Summary This document is the Qualifying Explanatory Statement (QES) which provides collected evidence in support of the declaration that Danone Actimel Belux : 1. has achieved carbon neutrality for its Actimel yogurts drinks marketed in Belgium and Luxemburg for the period commencing 1 st January 2020 to 31 st December 2020 (see Section 3); and 2. is committed to maintaining carbon neutrality for its Actimel yogurts drinks (see section 4). The carbon neutrality declaration has been made and the collected supportin g evidence has been provided in accordance with the requirements prescribed by PAS 2060:2014 – Specification for the demonstration of carbon neutrality. Nathalie PFAFF General Manager Belgium / Luxembourg 1 1 t h January 2022 [INSERT SIGNATURE] Rick Nijhuis Marketing Director Belgium / Luxembourg 1 1 t h January 2022 [INSERT SIGNATURE] General information PAS 2060 Requirement Information Relating to the Carbon Neutral Declaration Entity making PAS 2060 declaration: Danone Actimel Belux Subject of PAS 2060 declaration: The Actimel range manufactured in Belgium and sold on the Belgium and Luxemburg markets, consisting of all Actimel yogurts drinks sold in 2020 per 100g unit , including : 124186 - ACTIMEL STRW 4*(100gx4) 127194 - ACTIMEL MULTIFR 100gx8 new 127255 - ACTIMEL MULTI 4x(12x100g) 127258 - ACTIMEL STRA 4x(12x100g) 127265 - ACTIMEL STRW 100x8 new 133196 - ACTIMEL STRA 3x(14x100g) 21386 - ACTIMEL STRA 2x(12x100g) 178745 - ACTIMEL KIDS STRA/BAN 3x(8x100g) BE 127263 - ACTIMEL NATUR (100gx8) new 149109 - ACTIMEL NATU 4x(12x100g) 151526 - ACTIMEL NAT 4*(100x4) 21385 - ACTIMEL NATU 2x(12x100g) 133192 - ACTIMEL NATUR 0% (100gx8) 133193 - ACTIMEL 0% NATU 4x(12x100g) 133194 - ACTIMEL 0% STRA 3x(8x100g) 138239 - ACTIMEL BLACKCUR/ACAI/SEAB 3x(8x100g) 138245 - ACT IMEL CRANB/REDCUR/ROSE 3x(8x100g) 146310 - ACTIMEL MANG - CURC 3x(8x100g) 146312 - ACTIMEL PAPAYA/HONEY/MINT 3x(8x100g) 179030 - ACTIMEL POM/BLU/VIT C 3x(8x100g) BE 163924 - ACTIMEL POM/BLU/MAC 3x(8x100g) 174220 - ACTIMEL LEMON/GINGER/VIT C 3x(8x100g) BE 163 927 - ACTIMEL PLANT BASED PLAIN 3x(6x100g) 163928 - ACTIMEL PLANT BASED MANGO 3x(6x100g) 127196 - ACTIMEL POMEG 3x(8x100g) Notes : 1) Some products are made at the Rot selaar factory but are not included in this certification as they are not sold under the Actimel brand. These products are: Activia products, DAF products, Danonino products, Light & Free products and Vitalinea products. 2 ) One SKU (5243 – Actimel STRA 6 x(4x100g)/BE/UKI ) is not presented in the final product footprinting assessment report . However, this SKU and the SKU 124 1 86 are the same 1 24186 was SKU code only for Belgium market , whose footprint is 1 2 6,7 5 gCO2e/FU (Belgium market) Commitment to carbon neutrality for one new SKU One new SKU ( 178745 - ACTIMEL KIDS STRA/BAN 3x(8x100g) BE) will be launched in 2022 and is considered as a new product. However, the product has a similar recipe and a similar packaging than SKU 127265 (that has been assessed) The additional sales of this new product will not materially affect the neutrality claim , as they will not contribute to an increase superior to 5% of annual 2022 sales See details in the table below: Commitment to carbon ne utrality for two replacement SKUs Two new SKUs (174220 and 179030) will be launched in 2021 and 2022. They will replace similar products that will be delisted and therefore they are not considered as new products. They are updates on existing products and the changes will not materially affect the emissions, this is the reason why they are included in the certification scope. More specifically: - SKU 179030 has a similar recipe and packaging that SKU 138245. - SKU 174220 has a similar recipe and packaging that SKU 146310. Description of Subject: T he Actimel range consists of 25 SKUs, they are yogurt drinks, consumed for single use and available in different flavours (natural, strawberry, etc) The products are not re - sealable. Products are manufactured in Belgium and distributed to Belgium and Luxemburg markets Only s ales of the Actimel range in Belgium and Luxemburg are included, sales in all other markets are not included in the scope of this neutrality claim. Rationale for selection of the subject: The subject reflects all yogurts drinks products sold in Belgium and Luxemburg under the Actimel brand. The scope includes cradle - to - grave emissions based on the greenhouse gas (GHG) inventory carried out in accordance to the Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard (GHGP Product Standard). Control approach: Cradle - to - Grave Type of conformity assessment: Independent third - party certification (see Appendix 2 ) Baseline date for PAS 2060 programme: 1 st January 2020 Individuals responsible for evaluation and provision of data necessary for declaration: Marie GOYENS, Brand Manager Actimel , Danone Belgium Griet LAMBRECHTS, Carbon Master, Danone Belgium. Marion BLOEMENDAL, Milk Project Manager , Danone Belgium Declaration of achievement to carbon neutrality PAS 2060 Requirement Information Relating to the Carbon Neutral Declaration Declaration of achievement: Carbon neutrality of Actimel Yogurt Drinks achieved by Danone Actimel Belux in accordance with PAS 2060 on 1 1 th January 202 2 for the period commencing 1 st January 2020 , certified by the Carbon Trust. Recorded carbon footprint of the subject during the period stated above The footprint resulted in absolute terms, based on the total sales of Danone Actimel Belux in 7 771 tCO 2 e from January 1 st to December 31 st , 2020 See section 3.2 for further details. Carbon offsets purchased 7 968 (tCO 2 e) . The total carbon footprint in absolute value is 7 771 tCO 2 e but we chose to take a 3% security margin and buy more carbon credits. See section 3.4 for further details. Carbon footprint methodology PAS 2060 Requirement Information Relating to the Carbon Neutral Declaration Description of the standard and methodology used to determine GHG emissions and reductions The methodology for calculating the carbon footprint was as follows: Standard chosen and emission sources The Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard (GHGP Product Standard) was used to quantify the GHG emissions associated with products covered by the certification scope, using data representing operations between 1 st January and 31 st December 20 20 The products CO 2 e footprints ha ve been assessed by Carbon Trust Advisory team. The footprint s ha ve been reviewed and assured by Carbon Trust Assurance team The footprint resulted in absolute terms, based on the total sales of Danone Actimel Belux, in 7 771 tCO 2 e from January 1 st to December 31 st 2020 GHG emissions that are accounted for in the study are based on the 100 year Global Warming Potential figures published in the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report, 2014 and include those required by the GHGP Product Standard , which specifies emissions to and removals from the atmosphere of: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); sulphur hexafluoride (SF6); perfluorocarbons (PFCs); and hydrofluorocarbons (HFCs). All Scope 1, 2 and 3 emissions relevant to the scope of certification are included in the footprint and are summarised in Table 3.1 below. Where GHG emissions have been estimated, these have been determined based on a conservative approach that precludes underestimation. GHG emissions have been es timated in particular for the use and end - of - life phases. In the absence of data, emissions have been estimated based on conservative assumptions Offsetting has not been included in calculations. No avoided emissions have been included in the calculation s. Overview & general elements - Goal of the study The study has been ordered to measure the carbon dioxide equivalent (CO 2 e) emissions of the Actimel product range. - Use of secondary or primary data Danone Actimel Belux ha ve provided first - hand data for their dairy farms through the Cool Farm Tool directly f rom the farmers and have also provided primary data for all key processes in the product life cycle. Where primary data was not available, this was supplemented by secondary data provided by Carbon Tr ust. - Scope of the study & products The product systems that were included in the study are packaged yogurt drinks for Belgium and the Luxemburg . The products considered in this study may be classified according to the Europa CPA codes (European Commission, 2008). The products are for single - use only and are not re - sealable. Carbon footprints of 25 SKUs for the Belgium market and Luxemburg market have been measured. This includes 22 SKUs assessed and 3 news SKUs (1 new product and 2 replacement pr oducts). - Representativeness The time reference for the primary data collected for the products is 2020, from 1 st January to 31 st December. The technology reference is company - specific information supplemented with the most available industry average. The g eographic reference is Belgium and Luxemburg . The assessment was also applied to UK and Ireland. The assessment is applied to products made at the Rotselaar plant that represent 100 % of the total Actimel production in Belgium and Luxemburg. - Measurement unit(s) applied : The chosen unit of analysis for the assessment of the Actimel yoghurt drink range carbon footprint is grams. The defined functional unit for it is therefore one 100g packaged yogurt drink product. - Period of application : T he period of application is from 1 st January 2020 to 31 st December 2020 - Size of the resulting carbon footprint The processes included in the life cycle stage are the following: Raw milk supply : feed production, milk production, milk collection. Dairy processing : pr oducts and ingredients processing, container filling, packing and transport. Non - dairy ingredients supply : production of non - dairy ingredients, packaging and transport. Packaging : raw materials production, packaging manufacturing and transport to factory Distribution : transport to distribution centres, warehousing at distribution centres, retailing at point of sale, transport to final user. Use : chilling operations in domestic refrigerator. End of life : household waste (packaging waste transport and treatment). - Quantification based on calculations: For each life cycle stage, carbon footprint is estimated by multiplying the corresponding quantity/amount by an emission factor. Emissions factors used can come from : - From Danone internal tools: Danprint 2020 , Cool Farm Tool , Greentrack - From national & international databases : Ecoinvent, DEFRA (Department for Environment, Food & Rural Affairs) , Eurostat, BEIS 2020 , EBO (Belgium Government) - From Carbon Trust Agri Emission Database. Estimation rules a) Multi - output allocation According to ISO 14040 principles, allocation based on physical properties such as mass is preferred. There are not significant multi - output processes within this foregrou nd system that require allocation. As a result, all impacts from this product system are fully allocated to the products under assessment. Mass allocation is applied to the dairy products used as primary ingredients in the yogurt drinks: skimmed milk and c ream. This allocation is based on the dry matter content of each output product. The allocation calculation follows the principles described in the Product Environmental Footprint Category Rules for Dairy Products (European Dairy Association, 2021). The al location rules for determining the carbon footprint of concentrated products derived from raw milk such as condensed milk or cream are described in the following equation: Where AFi = allocation factor for product ‘i,’ DMi = dry matter content of product ‘I i ,’ and Qi = quantity of product ‘ i ’ output to the production site or from the unit operation (European Dairy Association, 2021). b) End - of life allocation End of life allocation follows the requirements of ISO 14040 and applies cut - off methodol ogy where appropriate. The alternative methodologies available are also described below. 1. Material recycling: Substitution (avoided burdens) approach : Scrap inputs into the product system are assigned an upstream burden of primary production which equa ls the credit the previous system would receive for recycling material. However, the EoL (End of Life) scrap which is recycled is then attributed an offset for the equivalent amount of virgin material which would have otherwise been consumed as a material input. This approach generally favours a product system where the use of recycled content is smaller than the amount of material recycled. Cut - off (recycled content) approach : Scrap inputs into the product system are considered free of any upstream mater ial burdens, as they are all assigned to the first life cycle of the material. However, the recycling of EoL scrap generated by the studied product system is not considered part of the system boundary, resulting in no credits being provided for downstream recycling. Other disposal processes such as incineration and landfilling are still modelled, however no credits are given for energy recovery. PEF - CFF : Both EoL approaches are modelling in the product system, and an allocation factor ‘A’ distributes the b urdens and credits from the substitution and cut - off approaches to the product system. This allocation factor is material and application - specific, between a range of 0.2 – 0.8. 2. Energy recovery: Substitution approach : Materials sent for incineration have a defined waste composition and thermal heating value, and the incineration processes have regional efficiency and heat - to - power output ratios. Power and heat outputs from material incineration are assigned credits fo r the avoided use of the regional grid mix. Cut - off : Where materials are sent for incineration, no credits for power or heat production are assigned. 3. Landfilling: Substitution approach : Materials sent for landfill have a defined waste composition, regional leakage rate, landfill gas capture and utilization rate. Credits are assigned from the power and heat outputs which enable the avoided use of the regional grid mix. Cut - off approach : Where materials are sent for landfill, no credits for power or h eat production are assigned. c) Cut - off criteria Several cut - off criteria may be used for LCA to decide which inputs to include in the study, such as mass, energy and environmental significance (ISO, 2006). No cut - off criteria are defined for this study a nd the collection of primary data, and all available energy and material data have been included in the model . Proxy data have been applied to fill any gaps in the life cycle inventory based on conservative assumptions and best available industry average d ata. This methodology was developed to be in accordance with the requirements of PAS 2050, ISO 14040, the GHG Protocol Product Lifecycle, and has been verified by the Carbon Trust. The provisions of the methodology for calculating the carbon footprint was applied as detailed and the principles set out in PAS 2060 were met. Justification for the selection of the methodologies chosen The Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard (GHGP Product Standard) was used to quantify the GHG emissions associated with products covered by the certification scope, using data representing operations between 1 st January and 31 st December 2020. This method was chosen as it provides an internationally recognised approach to the calculation of representative product CO 2 e footprints and meets the requirements of PAS 2060 for the substantiation of GHG emissions (PAS 2060: 5.2.2 to 5.2.4). Carbon footprint breakdown Carbon Footprint (for latest footprinting year) Information Relating to the Carbon Neutral Declaration Total Carbon Footprint 7 771 tCO 2 e Table 1 a) Product footprint emissions broken down by product per functional unit , Belgium SKUs Region Product SKU carbon footprint Units tCO2e per SKU BELGIUM 124186 - ACTIMEL STRW 4*(100gx4) 127 gCO2e/100g 13 BELGIUM 127194 - ACTIMEL MULTIFR 100gx8 new 126 gCO2e/100g 6 73 BELGIUM 127255 - ACTIMEL MULTI 4x(12x100g) 125 gCO2e/100g 8 47 BELGIUM 127258 - ACTIMEL STRA 4x(12x100g) 125 gCO2e/100g 1 501 BELGIUM 127265 - ACTIMEL STRW 100x8 new 126 gCO2e/100g 1 123 BELGIUM 133196 - ACTIMEL STRA 3x(14x100g) 109 gCO2e/100g 0 BELGIUM 21386 - ACTIMEL STRA 2x(12x100g) 125 gCO2e/100g 226 BELGIUM 127263 - ACTIMEL NATUR (100gx8) new 127 gCO2e/100g 4 25 BELGIUM 149109 - ACTIMEL NATU 4x(12x100g) 126 gCO2e/100g 2 83 BELGIUM 151526 - ACTIMEL NAT 4*(100x4) 132 gCO2e/100g 9 BELGIUM 21385 - ACTIMEL NATU 2x(12x100g) 127 gCO2e/100g 15 BELGIUM 133192 - ACTIMEL NATUR 0% (100gx8) 110 gCO2e/100g 3 51 BELGIUM 133193 - ACTIMEL 0% NATU 4x(12x100g) 109 gCO2e/100g 0 BELGIUM 133194 - ACTIMEL 0% STRA 3x(8x100g) 110 gCO2e/100g 5 29 BELGIUM 138239 - ACTIMEL BLACKCUR/ACAI/SEAB 3x(8x100g) 125 gCO2e/100g 307 BELGIUM 138245 - ACTIMEL CRANB/REDCUR/ROSE 3x(8x100g) 125 gCO2e/100g 4 39 BELGIUM 146310 - ACTIMEL MANG - CURC 3x(8x100g) 125 gCO2e/100g 3 78 BELGIUM 146312 - ACTIMEL PAPAYA/HONEY/MINT 3x(8x100g) 125 gCO2e/100g 2 15 BELGIUM 163924 - ACTIMEL POM/BLU/MAC 3x(8x100g) 93 gCO2e/100g 7 6 BELGIUM 163927 - ACTIMEL PLANT BASED PLAIN 3x(6x100g) 68 gCO2e/100g 3 5 BELGIUM 163928 - ACTIMEL PLANT BASED MANGO 3x(6x100g) 94 gCO2e/100g 66 BELGIUM 127196 - ACTIMEL POMEG 3x(8x100g) 4 gCO2e/100g 5 Total : 7516 Table 2 .b) Product footprint emissions broken down by product per functional unit, Luxemburg SKUs Region Product SKU carbon footprint Units tCO2e per SKU LUXEMBURG 124186 - ACTIMEL STRW 4*(100gx4) 135 gCO2e/100g 0 LUXEMBURG 127194 - ACTIMEL MULTIFR 100gx8 new 134 gCO2e/100g 20 LUXEMBURG 127255 - ACTIMEL MULTI 4x(12x100g) 133 gCO2e/100g 42 LUXEMBURG 127258 - ACTIMEL STRA 4x(12x100g) 133 gCO2e/100g 52 LUXEMBURG 127265 - ACTIMEL STRW 100x8 new 134 gCO2e/100g 23 LUXEMBURG 133196 - ACTIMEL STRA 3x(14x100g) 117 gCO2e/100g 0 LUXEMBURG 21386 - ACTIMEL STRA 2x(12x100g) 133 gCO2e/100g 0 LUXEMBURG 127263 - ACTIMEL NATUR (100gx8) new 135 gCO2e/100g 16 LUXEMBURG 149109 - ACTIMEL NATU 4x(12x100g) 134 gCO2e/100g 8 LUXEMBURG 151526 - ACTIMEL NAT 4*(100x4) 140 gCO2e/100g 0 LUXEMBURG 21385 - ACTIMEL NATU 2x(12x100g) 135 gCO2e/100g 0 LUXEMBURG 133192 - ACTIMEL NATUR 0% (100gx8) 118 gCO2e/100g 19 LUXEMBURG 133193 - ACTIMEL 0% NATU 4x(12x100g) 117 gCO2e/100g 0 LUXEMBURG 133194 - ACTIMEL 0% STRA 3x(8x100g) 118 gCO2e/100g 24 LUXEMBURG 138239 - ACTIMEL BLACKCUR/ACAI/SEAB 3x(8x100g) 133 gCO2e/100g 11 LUXEMBURG 138245 - ACTIMEL CRANB/REDCUR/ROSE 3x(8x100g) 133 gCO2e/100g 14 LUXEMBURG 146310 - ACTIMEL MANG - CURC 3x(8x100g) 133 gCO2e/100g 16 LUXEMBURG 146312 - ACTIMEL PAPAYA/HONEY/MINT 3x(8x100g) 133 gCO2e/100g 10 LUXEMBURG 163924 - ACTIMEL POM/BLU/MAC 3x(8x100g) 0 gCO2e/100g 0 LUXEMBURG 163927 - ACTIMEL PLANT BASED PLAIN 3x(6x100g) 76 gCO2e/100g 0 LUXEMBURG 163928 - ACTIMEL PLANT BASED MANGO 3x(6x100g) 74 gCO2e/100g 0 LUXEMBURG 127196 - ACTIMEL POMEG 3x(8x100g) 4 gCO2e/100g 0 Total : 255 3.2.1 Data methods Data sources To ensure the study meets data quality requirements, primary data comprises the majority of information in the inventory, supplemented with secondary background LCA information from BEIS 2020, Ecoinvent and the Carbon Trust Footprint Expert Reference Database. Primary data were sourced to support the main lifecycle stages, such as: - Raw milk supp l y: Danone Actimel Belux use the Cool Farm Tool to measure the carbon e missions of each of their dairy farms and were able to provide emission factors (kg CO 2 eq/litre of milk) for each farm, all of which are located in Belgium. Actimel were also able to provide emission factors for their dairy - alternative ingredients used to replace milk for the plant - based product range. - Dairy ingredients: data for skimmed milk and cream came from Danone Actimel Cool Farm Tool. - Packaging: many emission factors for packaging are extracted from Danprint 2020. - Dairy processing: renewable energy is measured thanks to Declaration of Honour Guarantees of Origin attributed to Danone in 2020. Secondary data were sourced to support various lifecycle stages, such as: - Dairy ingredients : Danone Actimel Belux are not yet able to quantify the carbon footprint of the condensed milk and powdered milk used in the yogurt drinks, and so secondary emissions factors are employed to represent these ingredients - Other ingredients used : emission factors for these ingred ients are sourced from the Carbon Trust Agri Emission Factor Database , except for the two following: A lmonds (Nemecek, 2012), Citrus fruits (Audsley, 2015). - Packaging : for two materials used, emission factors for packaging are coming from Ecoinvent 3.7.1. - Dairy processing: o Electricity grid mix carbon footprint is calculated with emissions factors from DEFRA database (emission factor), o Thermal energy from natural gas carbon footprint is estimated thanks to BEIS 2020 data base. End of life : the end - of - life waste management splits for the packaging materials use EU - 28 data sourced from Eurostat (Eurostat, 2018). Data quality and uncertainties Data quality is the following for each life - cycle stage: Life cycle stage Data quality Explanations Raw milk supply Good Time representativeness : good Technological representativeness : good (Cool Farm Tool) Geographic representativeness : good Improvements: Verifying low carbon emission factors for raw milk coming from dairy farms Dairy processing Good Time representativeness : good Technological representativeness : good Geographic representativeness : good Improvement s : - Provide sub - metered process - specific energy consumption at the factory. - Engage with suppliers to provide primary emission factors (or data to calculate) for condensed milk, powdered milk, and other ingredients currently using secondary sources. Non - dairy ingredients Good Time representativeness : medium See emission factors of Almond (Nemecek 2012) and Citrus (Audsley 2015) Technological representativeness : good Geographic representativeness : good Improvement: - Provide sub - metered process - specific energy consumption at the factory. - Engage with suppliers to provide primary emission factors (or data to calculate) for cond ensed milk, powdered milk, and other ingredients currently using secondary sources. Packaging Good Time representativeness : good Technological representativeness : good Geographic representativeness : good Improvement: - Better understand the carbon impacts from suppliers packaging i.e., the energy intensity of their moulding/extrusion processes and whether they procure renewable energy Distribution Fair Time representativeness : medium Technological representativeness : medium Geographic representativeness : medium Use Fair The use phase assumption is defined as refrigeration with the retailer for 10 days, and further refrigeration with the consumer for 10 days. It is assumed that the majority of the yogurt drink is consumed (95%) with a low amount of organic wastage at end of life. End of life Fair The end - of - life waste management splits for the packaging materials use EU - 28 data sourced from Eurostat (Eurostat, 2018). C arbon footprint based on 95% of likely greenhouse gas emissions; primary sources are subject to variation over time; footprint is best estimate based on reasonable costs of evaluation Assumptions o Electricity, natural gas and process water could not be allocated at a sub - metered level. This data was available at a site level with total produced units specified in tonnes. The total consumption of these utilities was therefore apportioned equally across the product range with no assumptions made that one product SKU was more or less energy/water - intensive than the other. o Average distances were provided by Danone Actimel Belux for product distribution; however, the distribution vehicle type was unspecified. This was therefore assumed to be a Rigid Lorry 25 - 32 tonnes, 4 - axle - UK. o Vehicle load for the outbound transportation of finished products was assumed to be 85%, based on sector - average value (Footprint Expert, 2021). o The average distance between retail distribution centres and supermarkets was assumed to be an average of 60km (Footprint Expert, 2021). o Average lifespan of the yogurt was assumed to be 30 days, with 10 days stored at RDC, 10 days stored at the supermarket, and 10 days at the consumers’ home This assumption was provided by Danone Actimel Belux o For supermarket chilling, it was assumed 15% of products would be stored in an open chiller and 85% in a closed refrigerator (Footprint Expert, 2021). o At end of life of the product, it was assumed that 95% of yogurt would be ingested, with the remaining organic material being sent to landfill with t he packaging. The country of sales are as follows: Table 2. List of country of sales Country of Sales Belgium Luxembourg Table 3 . Description of GHG emissions Life cycle stage Description GHG Emissions Category Excluded emissions & Justification Raw milk supply Raw milk supply of the product s is included in the scope of certification. It includes: Feed production in farms & purcha sed Milk production in farms. Milk collection, with trucks that collect milk from the farms to transport it to the production plant. Scope 3 – indirect emissions Exclusion of the following emissions coming from: Refrigerants at the dairy farm s Cleaning products at the dairy farm s Cattle insemination and administration of medicine or antibiotics Such emissions have been excluded because they are non - significant, and data was not available. Dairy processing Products and ingredients processing : Reception of Milk, cream, concentrated milk , milk powder or plant - based alternatives at the plant where they are stored and refrigerated. The products are mixed, pasteurised, fermented and cooled. Container filling, packing and transport : The products are filled, packed and sent in refrigerated trucks t o mark ets. They also can be tested and end as wastes. Scope 1 – Stationary and mobile combustion Scope 2 – Purchased electricity (market - based) & heat and steam Scope 3 – indirect emissions Exclusion of the following emissions coming from: Capital Goods at the dairy unit Solid waste at the dairy unit Transportation of input products to the dairy unit accounting for less than 1% in mass Yeast and bacteria production Rennet production Lactic ferments production Such emissions have been excluded because the y are non - significant, and data was not available. Non - dairy ingredients Production of non - dairy ingredients ( water, vitamins, fruit sludge, sugar syrup, starch, culture, sweetener, oat syr up, pea protein, almond paste, agents, lactase ) Packaging and transport Scope 1 – Stationary and mobile combustion Scope 2 – Purchased electricity (market based) & heat and steam Scope 3 – indirect emissions NA Packaging Raw materials production (bottle, aluminium, bottle label , envelope, glue, tertiary packaging) Packaging manufacturing and transport to factory Scope 3 – indirect emissions NA Distribution Distribution of the packed products from the plant to the customer including: Transport to distribution centres Warehousing at distribution centres Retailing at point of sale Transport to final user Scope 3 – indirect emissions C apital goods at distribution centre and at retail are not included in this scope. Such emissions have been excluded because they are non - significant, and data was not available. Use Products are used by consumers and retailers . This stage covers refrigeration at retailers and refrigeration at consumers. Scope 3 – indirect emissions Cutlery for dairy products consumption and ambient storage at the consumer home are excluded from this scope. Such emissions have been excluded because they are non - significant, and data was not available. End of life At end of life, primary, secondary, and tertiary waste packaging can be recycled, incinerated for energy recovery, incinerated without energy recovery or landfilled. The h ousehold waste ( packaging was te transport and treatment ) is included in this life cycle stage. Scop e 3 – indirect emissions NA Carbon offsets PAS 2060 Requirement Information Relating to the Carbon Neutral Declaration Offset methodology The offset methodology is based on the purchase of carbon credits from the Livelihood Fund. These credits are certified by Gold Standard and Verra and all correspond to effective and verified sequestration or reduction projects. Offset Confirmation The o ffsets generated represent genuine, additional GHG emission reductions elsewhere. Projects involved in delivering offsets meet the criteria of additionality, permanence, leakage and double counting. Carbon offsets are verified by an independent third - party verifier. The credits from the selected carbon offset projects are: only issued after the emission reduction has taken place. retired within 12 months from the date of the declaration of achievement supported by publicly available project documentation on a registry which provides information about the offset project, quantification methodology and validation and verification procedures. stored and retired in an independent and credible registry. Offsets Full details of the carbon offsets included in ma king this declaration are provided in Appendix 1 Declaration of ongoing commitment to carbon neutrality PAS 2060 Requirement Information Relating to the Carbon Neutral Declaration Declaration of on - going commitment: Danone Actimel Belux commits to maintain carbon neutrality for Actimel yogurt drinks in accordance to PAS 2060 for the period from January 1 st to December 31 st , 2021 Danone Actimel Delux also commits to carbon neutral certification of the new SKU ( 178745 - ACTIMEL KIDS STRA/BAN 3x(8x100g) BE) to be launched during 2022 to be certified in 2023 and sufficient carbon offsets bought covering the data period. Carbon neutrality for Actimel yogurt drinks for the period from January 1 st to December 31 st 2021 will be achieved by January 1 st 2023. Carbon management plan PAS 2060 Requirement Information Relating to the Carbon Neutral Declaration Targets for GHG reduction for the defined subject appropriate to the timescale for achieving carbon neutrality The average reduction target by 202 1 is 3% per year in tCO 2 e/tons of Actimel product sold , over the baseline. We will apply a reduction plan based on the weighted average of 1,2 0 tCO2e/tons of sold products Planned means of achieving and maintaining GHG emissions reduction Danone Actimel Belux has set an average reduction target of 3% per year in tCO2e/tons In order to reach this goal, four categories of projects will be implemented over the years starting in 2021 to reduce emissions. These projects concern milk, packaging, factory, and transport related activities. In details: I. Projects 1)Milk Set up electric pumps trucks for transportation Increasing the amount of alternative crops Using the feed additive Bovear for methane reduction Pocket digestor project: digestion of the manure and production of green energy Carbon monitoring network Emission factors optimization for condensed milk by collecting data from the suppliers. 2)Packaging GRETA project: elimination of the banderole Reduction of the aluminium lid of the bottles Reduction of the weight of the bottle Switch from virgin HDPE to mechanical rHDPE Switch to paper bottle 3)Factory Steam reduction project s - C onnect Pasto410 to hot water tank - Rerouting ice water for steam reduction - Optimisation CIP for steam reduction - Optimisation of hot water recovery circuit for steam reduction - Green thermal audit - Extra steam meter LED relighting Elimination of fat in the influent of the WWTP Solar panels installation in the plant Combined heat and power on green gas Reduction of general waste Redirection of waste to animal feeding Obsolete R&P reduction 4)Transport Truck fill rate Belgian market Trucks using bio diesel Encouraging zero food waste by helping customers to prevent food waste and by proposing uniform policy for clearance, sponsoring and donations. Switch from Use by to Best Before Date for Actimel Products. II. Tracking progress & target management: Performance indicators have been set up to monitor the progress of the reduction plan on an annual basis in the next ten years Plus i n the conte xt of “ One Planet One Health ” Danone strategy, sustainable targets are more and more important for Danone employees. The evolution of the average carbon price in the coming years is also taken into account in the strategic forecasting. Meeting s are planned with the core team and the stream leaders, in charge of reduction projects, on a regular basis. Objective of these meetings is to further work on our long - term reduction plan by: - Monitoring/follow - up on implementation of validated projects - Further assess/evaluate projects to have them validated for implementation - Unlock new reduction opportunities through our different pillars A consolidated roadmap has been created and shared with all the stream leaders Project’s description s , pro jects costs, CO 2 impacts, date s of implementation, CAPEX and OPEX are completed in this document and updated on a regular basis The offset strategy to be adopted To meet the requirements of PAS2060 we are required to offset 7 771 tCO 2 e However, we decided to t ake a 3 % security margin, knowing that Actimel volumes are about to increase in the years to come. The total of credits we purchase represent s 7 968 tCO2e The nature of the projects will be agroforestry and cookstove projects Projects are certified by Gold Standard and VCS (VERRA).