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Danone Adds Social, Environment Goals to Bylaws Amid Pandemic

Danone Adds Social, Environment Goals to Bylaws Amid Pandemic

(Bloomberg) -- Danone SA plans to cement social and environmental goals into its bylaws as Chief Executive Officer Emmanuel Faber sees the coronavirus pandemic accelerating change.

The maker of Activia yogurt will include goals like providing healthy food and preserving the planet’s resources in its bylaws, the Paris-based company said in a statement Wednesday. An external group will audit progress and report them to shareholders at the annual general meeting every year.

The coronavirus pandemic led the board to accelerate steps toward a goal of becoming B-Corp certified company at a global level, a status its North American subsidiary already holds. Danone said in February it plans to invest 2 billion euros ($2.2 billion) over the next three years into sustainability projects, starting out with more recycled plastic at bottled water brands Volvic and Evian.

“The virus is in many ways a symptom of our ways of living on this planet,” Faber said in a phone interview, pointing to mass transportation, deforestation, urbanization and diminishing biodiversity. “We shouldn’t look at it as an accident, but as a very clear warning. There is a need for change.”

The changes to the company’s bylaws are backed by its large shareholders, Faber said.

The plan will be voted on at Danone’s annual general meeting on June 26. The company maintained its dividend of 2.10 euros per share.

Faber’s pay will be cut by 30% from July 1 for the rest of the year, while the the board of directors will give up their compensation completely in the second half. The savings will help finance expanded health coverage for employees.

©2020 Bloomberg L.P.