France-based Danone DANOY announced Thursday it will invest €2 billion ($2.18 billion) as part of a "climate acceleration plan" over the coming three years.
Danone said in a press release the objectives include transforming its agriculture, energy and operations, packaging and digital capabilities. CEO Emmanuel Faber said it plans on to create a new "climate-powered business model" and its brand will emerge stronger "if climate is an allay and not an enemy."
Why It's Important
A key focus on Danone's sustainability investments is on regenerative agriculture, the company said. According to Faber's comments, there is an "urgency to put carbon back into the soil because carbon is essentially 60% of organic matter."
The CEO added, "you cannot have healthy soils that will support the agriculture of tomorrow if we do not put carbon back into the soil through regenerative practices."
Danone also set a target of reaching 100% recyclable bottles in its European business by 2025 and it will also invest in creating packaging alternatives to plastics.
The €2 billion investment will consist of €600 million in recurring costs over three years, €1 billion of which will be related to capital expenditures, and €500 million will be one-time costs.
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Screengrab of Danone.com
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