The pursuit of corporate purpose beyond immediate shareholder returns is increasingly defining the strategic landscape for global enterprises, a journey often fraught with complexity and internal tensions. Danone, a multinational food giant, exemplifies this challenge. Despite becoming the first listed company to adopt France’s ‘société à mission’ status in 2020, and a subsequent leadership change driven by activist investor pressure, the company has steadfastly continued its commitment to environmental, social, and governance (ESG) objectives, including an ambitious aim to become the world’s largest B Corporation.
- Danone adopted France’s ‘société à mission’ status in 2020, becoming the first listed company to do so.
- Former CEO Emmanuel Faber was removed in 2021 due to pressure from activist investors.
- The company continues its ambition to become the world’s largest B Corporation.
- Danone aims to reduce methane emissions from livestock by 30 percent by 2030.
- B Lab has adapted its B Corp certification standards to accommodate large multinational corporations.
The commitment to a broader purpose faced a critical test in 2021 when then-chief executive Emmanuel Faber was removed by Danone’s board. This decision followed pressure from activist investors who contended that prioritizing ESG initiatives was detrimental to financial performance. While counterarguments suggested market conditions, not ESG spending, drove underperformance, Faber’s deep commitment to integrating ESG principles was undeniable. His departure underscored the persistent friction between traditional shareholder primacy and the emerging model of stakeholder capitalism, a concept Danone’s former CEO Antoine Riboud famously championed as early as 1972.
Strategic Commitments to Sustainable Food Systems
Danone’s core mission is complicated by the inherent complexities of sustainable food systems. The global food supply chain, particularly livestock production, accounts for approximately 20 percent of greenhouse gas emissions and is deeply intertwined with issues like climate change, biodiversity loss, and water scarcity. To address this, Danone has adopted a multifaceted approach. The company targets a 30 percent reduction in methane emissions from livestock by 2030, investing in advanced manure management and feed additives such as Bovaer, the first FDA-approved enteric methane inhibitor, and Symbrosia’s seaweed-based solutions. Concurrently, Danone is expanding its plant-based portfolio significantly, following its 2017 acquisition of WhiteWave Foods (parent company of Alpro and Silk), which positioned it as a market leader in non-dairy and plant-based alternatives.
Navigating B Corp Certification at Scale
Under the leadership of Emmanuel Faber’s successor, Antoine de Saint-Affrique, Danone has reaffirmed its dedication to its mission, aiming to become the largest B Corporation. This ambition highlights a significant challenge: integrating comprehensive sustainability standards across a multinational enterprise. Achieving B Corp status is often more straightforward for smaller, founder-led companies with transparent supply chains and focused operations. For a conglomerate like Danone, with nearly 90,000 employees across more than 55 countries and €28 billion in annual sales, the process requires substantial adaptation from certifying bodies like B Lab.
B Lab, the non-profit issuer of the B Corp label, has had to evolve its own standards to accommodate multinationals. This adaptation has not been without controversy, as illustrated by the pushback when Nestlé’s Nespresso division obtained B Corp status, leading to accusations of greenwashing from a coalition of previously certified coffee companies. Despite these criticisms, B Lab views the inclusion of large corporations as crucial for expanding the movement’s impact. In 2022, while multinationals constituted only two percent of certified B Corps, they accounted for almost 30 percent of employees working for certified companies, signaling the potential for broad influence. Danone’s B Corp global manager, Helene De Laguiche, noted that while employees are deeply invested in the process, the company continues to refine its communication strategies to effectively convey the value of B Corp status to external stakeholders, including customers and investors.
The ongoing journey of Danone underscores a pivotal debate in contemporary corporate governance: the role of businesses in addressing societal and environmental challenges beyond short-term profit maximization. The evolution of frameworks like ‘société à mission’ and B Corp certification reflects a growing recognition that integrating purpose into a company’s fundamental DNA is not merely an ethical choice, but a strategic imperative that shapes its long-term resilience and value proposition in an increasingly conscious global economy.
Oliver brings 12 years of experience turning intimidating financial figures into crystal-clear insights. He once identified a market swing by tracking a company’s suspiciously high stapler orders. When he’s off the clock, Oliver perfects his origami… because folding paper helps him spot market folds before they happen.