Danone

Policy Commitment

• Danone’s overarching commitments to the Code had not changed since the 2021 assessment. The company continues to clearly state its support for exclusive breastfeeding in the first six months and continued breastfeeding to two years and beyond, as well as for the introduction of appropriate complementary foods from the age of six months.

• Although compared to the other companies assessed Danone’s overarching commitments are relatively well-aligned with the principles of the Code, the company still does not fully acknowledge the specifications to the Code provided by the World Health Assembly (WHA) in resolution 69.9 and the accompanying guidance on ending the inappropriate promotion of foods for infants and young children. WHA resolution 71.9, which calls for continued implementation of the recommendations of this guidance has not been acknowledged by the company either.

• Danone did not receive a full score on the new indicator that assesses whether companies apply their BMS marketing commitments to all types of formula, including formulas for special medical purposes.

Policy Commitment

• Danone’s policy commitments relating to advertising and the promotion of BMS, which are relatively well-aligned with the requirements of the Code, are the same as the 2021 assessment.

• Compared to the last assessment in 2021, several of the indicators in this topic have been adapted to capture companies’ explicit commitments in digital environments too, such as advertising on social media and point-of-sale promotions on online retail stores, as well as establishing contact with caregivers through baby clubs and social media groups – all actions that are not compliant with the Code.

• Danone is one of only four companies found to make the explicit commitments extending its Code-aligned commitments to digital environments, such as advertising on social media and point-of-sale promotions on online retail stores. The only exception is regarding establishing contact with caregivers through service platforms the company confirmed that, if caregivers were to request the company to provide education and information, it would engage with them, and therefore the commitment is not met in full.

• Indicators were also revised to ensure accurate and complete inclusion of all recommendations of the guidance on ending the inappropriate promotion of foods for infants and young children supported by WHA resolution 69.9, for example by adding indicators to address cross-promotion of BMS products and educating caregivers on infant and young child feeding, both of which BMS companies should not do according to the Code. Danone’s policy was found not to fully reflect the latest WHA resolution 69.9 recommendations, such as prohibiting the cross-promotion of BMS products and educating caregivers on infant and young child feeding. However, regarding cross-promotion, ATNI learned that, in 2022, the company developed an internal framework for product packaging differentiation between BMS products, non-BMS products, and other categories. According to Danone, its internal guidelines would be finalized by the end of 2023, but this was not captured within the timeframe of this assessment.

• Danone is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• Danone shared – under NDA – global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company does not fully score on management systems as it does not have all Code provisions in place. However, in regard to the commitments found for the company on public advertising and promotion of BMS that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Danone scores on those elements.

Policy Commitment

• Danone’s policy commitments relating to marketing BMS throughout the healthcare system, which are relatively well-aligned with the requirements of the Code, have not changed since the 2021 assessment.

• Compared to the last assessment in 2021, indicators were slightly revised to ensure an accurate assessment of recommendation 6 of the guidance supported by WHA resolution 69.9 to evaluate whether companies have explicit commitments in place not to use health facilities to host events of any kind to avoid conflicts of interest. Similar to the 2021 assessment, and like most of the BMS companies assessed in this Index, Danone did not score on this indicator that capture these Code commitments that specifically relate to WHA resolution 69.9.

• The company also was found not to show commitments indicating that it will not provide or pay for ‘professional service representatives’, ‘mothercraft nurses’ or similar personnel to work in the health care system. The reason is that the company indicated in its BMS marketing policy that it may contract health care professionals for speakers, professional advisors, edits and /or review among others. Therefore, the company does not meet this requirement.

• Another indicator that was revised to ensure accurate assessment is to not give out gifts or any other offering to caregivers of infants and young children. Danone was one of the two companies that scored on this.

• Danone is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• Danone shared – under NDA – global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company does not fully score on management systems as the documents provided do not mention specifically healthcare facilities except for the provision relating to gift/coupons.

• Danone’s management systems can be improved by providing more concrete examples of what company personnel should or should not do specifically in healthcare facilities.

Policy Commitment

• Danone’s policy commitments relating to BMS donations within the healthcare system, in humanitarian settings and emergencies, and in social welfare institutions are partially aligned with the requirements of the Code.

• Compared to the last assessment in 2021, commitments on donations of BMS are now assessed in a separate topic and across several indicators, to ensure a more accurate assessment of the specific requirements relating to BMS donations.

• Danone also falls short of meeting the Code requirements on donations by allowing the provision of educational materials and/or practice-related items to healthcare professionals, or providing free or low-cost supplies which is specifically addressed in recommendation 6 of the guidance supported by WHA resolution 69.9 due to the risk of creating a conflict of interest.

• In situations whereby an authority makes an official request for BMS donations, Danone commits that it will not donate products that are expired or close to expiry. However, it does not include an explicit statement that all donated supplies will have a six-month shelf life from the point they are delivered. The company also did not commit to ensure that donated BMS products will not display company branding.

• The company also explicitly commits to not distribute BMS product donations or low-cost supplies for use outside of the social welfare institutions (e.g. food banks and orphanages) where infants and young children require them.

• Danone is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• The company shared – under NDA – global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS, as outlined in the company’s related policy(ies). The company does not fully score on management systems since it does not have all Code provisions in place. However, in regard to the commitments met by the company on donations that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Danone scores on those elements.

Policy Commitment

• Danone’s policy commitments relating to marketing BMS to healthcare workers are partially aligned with the requirements of the Code.

• Compared to the last assessment in 2021, a new indicator was introduced for this topic to specifically assess the instructions provided to healthcare workers on the appropriate preparation of powdered formulas and if these are based on WHO/FAO guidelines and Codex Standards as referenced by WHA resolutions 58.32 and 61.20 . Danone did not score on this indicator and none of the 18 companies assessed met this requirement.

• Danone, however, is one of only four companies out of the 18 assessed to explicitly state that any material that contains information about formula use that is provided to health workers will include information on the social and financial implications of formula use and the health hazards of inappropriate feeding methods, unnecessary or improper use of BMS, and their inappropriate preparation, as per the requirements of the Code.

• Two other indicators were slightly revised to ensure an accurate assessment of recommendation 6 of the guidance supported by WHA resolution 69.9 to evaluate whether companies have explicit commitments in place not to offer any financial or material inducements (no gifts or incentives of any form or value) to healthcare workers or their families, and not to sponsor any scientific meetings, fellowships, study tours, and research grants for health professionals, to avoid conflicts of interest. Compared to the 2021 assessment, Danone scored lower on these indicators in this assessment. These indicators capture the Code commitments that specifically relate to WHA resolution 69.9.

• Danone is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• Danone shared – under NDA – global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company does not fully score on management systems as it does not have all Code provisions in place. However, in regard to the commitments met by the company on marketing BMS to healthcare workers that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Danone scores on those elements.

Policy Commitment

• Danone’s policy commitments that address the incentives of company employees involved in BMS marketing, which are relatively well aligned with the requirements of the Code, have not changed since the 2021 assessment.

• Danone continues not to commit to exclude the volume and/or value of sales of products covered by the company’s BMS marketing policy from bonus calculations for sales representatives. Therefore, the company is not aligned with the requirements of the Code, which explicitly states that incentive measures should not include the volume or sales values of BMS products, regardless of whether they are considered individually or alongside other product sales.

Management System

• Danone shared – under NDA – global staff training materials and some local procedure manuals developed by the company to guide personnel on the basis of determining employee incentives as outlined in the company’s related policy(ies). The company does not fully score on management systems as it does not have all Code provisions in place. However, in regard to the commitments met by the company on employee incentives that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Danone scores on those elements.

• Danone is one of three companies out of the 18 assessed that provides clear instructions to staff on how to interpret and apply relevant commitments related to incentives of employees involved in BMS marketing.

• Related procedures, however, can be improved by ensuring they are as complete and consistent across all markets.

Policy Commitment

• Danone’s policy commitments relating to the labeling of BMS products, which are relatively well-aligned with the requirements of the Code, have not changed since the 2021 assessment.

• Compared to the last assessment in 2021, the information required by the Code on labels of powdered formula is assessed in more detail to evaluate whether companies have specific commitments covering each requirement as per WHA resolutions 58.32 and 61.20 . Danone was found to commit to including a message that powdered formula may cause illness if not prepared properly. Moreover, it confidentially shared with ATNI a checklist for its designers for artwork and a video with instructions to prepare formula feed appropriately. However, the company did not provide evidence of a policy or official company document that explicitly states that labels/inserts of powdered infant formula must include the specific requirements according to the WHA resolutions 58.32 and 61.20.

• Although the company was found to have explicit commitments in place pertaining to the requirements described in Article 9.4 of the Code, no commitments were found to ensure the appropriate age range is stated on growing up milk labels. Commitments were also not found that cover the Code labeling requirements strengthened by the guidance on ending the inappropriate promotion of foods for infants and young children according to WHA resolution 69.9.

• Danone continues explicitly to commit that it will not place any health or nutrition claims on its BMS products, unless specifically provided by local legislation, as per WHA resolutions 58.32, 63.23, and 69.9.

• Danone is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• Danone shared – under NDA – global staff training materials developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). However, the document does not contain clear instructions to staff on how to interpret and apply relevant commitments related to health and nutrition claims and/or on how to interpret and apply relevant commitments related to labeling.

• In regard to the commitments met by the company on labeling BMS products that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete, and consistent across different markets, thus Danone scores on those elements.

• Related procedures, however, can be improved by outlining clear standards of practice, including a section on roles and responsibilities or on the label’s development following specific requirements for BMS products.

Policy Commitment

• Compared to the BMS/CF Marketing Index 2021, companies’ commitments on this topic are evaluated in more detail to ensure their commitments relating to Article 10 of the Code are accurately assessed.

• Danone did not score fully on this topic since its policy commitments relating to the quality of BMS products were not comprehensive. This is because other than the Code of Hygienic Practice for Powdered Formulae for Infants and Young Children (CAC/RCP 66-2008), the company does not specify which other Codex standards relating to BMS products it applies.

• Danone is encouraged to explicitly state which specific Codex standards it follows at a minimum for clear reference, and to ensure that the listed standards are regularly revised so that the most updated versions are adhered to.

Management System

• Danone shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company did not score on management systems as it did not meet the policy commitments in full.

Policy Commitment

• Danone’s policy commitments relating to monitoring compliance of its marketing practices to the principles of its BMS marketing policy have not changed since the 2021 assessment. The company was found to have all commitments assessed in place. These commitments, which specifically pertain to Article 11 of the Code, remain publicly disclosed.

Management System

• Compared to the 2021 assessment, Danone has a similar score in the current assessment. The company shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies), as well as effective monitoring and management of incidences of non-compliance with the company policy(ies). The company also clearly assigns executive responsibilities and oversight to ensure the effective implementation of its BMS marketing policy. However, the company does not show guidelines for all relevant third parties on potential corrective actions that can be taken against them for non-compliance incidents. Consequently, the company does not have a full score on management systems.

Policy Commitment

• Danone commitments are relatively aligned with the Code on this topic showing responsible lobbying which is also applied when engaging on issues relating to BMS and the Code. Based on its Policy Advocacy policy (2023), Danone covers most commitments assessed in this topic.

• Similar to other companies, Danone did not show commitments not to undermine or support existing public policy frameworks, the work of WHO or similar agencies, and Government efforts to develop regulations to implement the Code nor commitments on controls over trade associations and industry policy groups.

• Danone also did not show commitments that it will put in place controls over all lobbyists (in-house and intermediary, paid or unpaid) to ensure that they understand and adhere to organizational policies.

Management System

• Based on Danone’s Policy on Advocacy (2023) the company had a full score and was found to have extensive evidence that the board has oversight of its lobbying policy and lobbying positions and activities. Further, the company names an executive/ function with the responsibility of implementing this policy. The company also provides clarity on control mechanisms (e.g. reporting to the Board, internal audits). Danone was the only company that had an extensive management system in place.

Disclosure

• In regard to commitments that were found for Danone that are in line with the Code, the level of disclosure on these commitments and on the company’s compliance with its BMS marketing policy is relatively high and has not changed since the 2021 assessment.

• Danone can improve on this topic by disclosing the company’s acknowledgement of the importance of The Code, which was not considered because commitments were only disclosed in the BMS Call to Action, commitments must be disclosed on the company's official website/reports.

• Other areas, where Danone can improve on this topic, include disclosing its commitments related to quality of BMS products, on how it internally assessed compliance with commitments related to donations, manufactures and distribution, quality and implementation and monitoring. The company should also publish the full auditor reports, and not just summaries of them as well as disclosing a response to any third-party reports on alleged cases of non-compliance the company publicly acknowledges third-party reports on alleged cases of non-compliance with the Code, its responses to these allegations have not been found in the public domain. However, the company does disclose complaints made by other stakeholders and explains how it has responded to them.

• Since the last BMS/CF Marketing Index 2021, a few indicators have been added to further assess companies’ level of disclosure in lobbying on BMS marketing issues and the Code. Danone publishes extensive information regarding its BMS-related lobbying, and has improved since the 2021 assessment by publishing some information on its lobbying activities such as the company’s relevant documents (e.g. consultation submissions related to the Code and BMS). Although Danone publicly discloses following the OECD principles for transparency and integrity in lobbying, Industry initiatives, such as the IFBA Guiding Principles for Stakeholder Engagement and the Responsible Lobbying Framework, ATNI advises the company to also follow other key public policy frameworks in private sector engagement and lobbying such as the WHO framework of engagement with non-state actors, the Code and subsequent WHA resolutions, among others.

• Danone is encouraged to consider the gaps identified in its level of disclosure and have this information available and easily accessible in the public domain.