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DANONE PLEDGES 100% RENEWABLE ELECTRICITY BY 2030, UPS ENERGY EFFICIENCY
AMBITIONS

Multinational food and beverage giant Danone has published a sweeping new global
energy strategy, including new commitments on renewables and energy efficiency
that should accelerate its decarbonisation.

 * Climate & nature
 * Energy

Sarah George

Published 17th November 2022

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   efficiency ambitions from edie on LinkedIn
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   efficiency ambitions from edie via Email

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COP27 LIVE BLOG: WHAT HAPPENED ON BIODIVERSITY DAY?

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FROM LOSS AND DAMAGE DEBATES TO CLAMPDOWNS ON GREENWASHING: 13 KEY TAKEAWAYS
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CORPORATE EXECUTIVES STILL DON’T BELIEVE SUSTAINABLE BUSINESS IS PROFITABLE,
SURVEY REVEALS

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Pictured: The company's manufacturing plant in Opole, Poland. Image: Danone

Called ‘Re-fuel Danone’, the strategy includes a commitment for all electricity
used in operations to be renewable by 2030, up from 68.5% at present. Increased
renewable electricity procurement, plus fuel switching elsewhere, will mean that
at least half of Danone’s total global energy use in 2030 will be renewable.

On fuel switching, Danone has stated that its priority focuses for heating
processes and buildings are biomass, solar thermal and hydrogen. One biomass
project, in Indonesia, sees the corporate using crop husks to produce energy
before returning the ash to farmers for use as fertiliser.

For both electricity and fuels, Danone has pledged to shift to local energy
sources wherever possible, including self-generated renewable electricity. This
has joint benefits of improving energy resilience and directly building local
economies.

Re-fuel Danone also includes new commitments on energy efficiency. The
overarching pledge is to improve energy efficiency by 30% by 2025.

The business has stated that it will use “a range of measures” to improve energy
efficiency, including behavioural changes and more high-tech solutions,
including real-rime building energy management systems (BEMS). In some sites,
including Wexford, Ireland, and Opole, Poland, artificial intelligence (AI) has
been applied to BEMs, enabling rapid and accurate analysis of energy use.

Danone’s global head of operations Vikram Agarwal said that meeting the new
commitments will make the business “more sustainable, more agile, more cost
efficient and more resilient”. Agarwal added: “It also adds to how we deliver
for our customers and consumers and helps us reconnect performance and purpose,
so marks further progress on our strategy to Renew Danone.”

‘Renew Danone’ is the name of the business’s updated strategic plan, released
back in March. The company has stated that the plan “is all about creating the
conditions for sustainable and competitive growth, and then delivering
consistently in a way that creates sustainable value for all.“ It does not
contain many new environmental targets, but rather deepens the link between its
existing sustainability ambitions and plans to improve innovation and
profitability.

Energy focus

edie’s recent Net-Zero Business Barometer Survey, completed by 148 energy and
sustainability professionals at different organisations, found that 60% believe
their employer has “heightened” work on energy efficiency. Similarly, more than
half (56%) said their organisation is exploring or installing decentralised
energy generation, such as onsite solar.

The majority of respondents also said that their organisation is likely to
invest in behaviour change for sustainability in the next 12 months. This can be
a cost-effective step. 49% said this is either a ‘high’ priority or a
‘business-critical’ priority. Only 5% said it was not a priority at all.

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 * renewables

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   efficiency ambitions from edie on Facebook
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   efficiency ambitions from edie on LinkedIn
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   efficiency ambitions from edie via Email

Words Sarah George

Published 17th November 2022

© Faversham House Ltd 2022 edie news articles may be copied or forwarded for
individual use only. No other reproduction or distribution is permitted without
prior written consent.

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