54 2016 ANNUAL REPORT 2016 ANNUAL REPORT 55

GOVERNANCE AND RESULTSGOVERNANCE AND RESULTS

Reducing wastewater discharges and improving wastewater quality Total wastewater discharges amounted to 14.0 million m³, stable compared to 2015.

96.5% of wastewater is purified before being discharged into the natural environment.

Destination of wastewater (Like-for-like, all locations)

2016 2015

2016 2015

2016 2015

2016 2015

10.3% 11.1%

9.1% 8.6%

3.5% 3.3%

77.2% 77.0%

Sanitation networks, without treatment Sanitation networks, after treatment Natural environment, without treatment Natural environment, after treatment

These results were attributable to actions which are improved each year:

Manufacturing process control Reduction of water consumption, thus mechanically reduc- ing the volume of wastewater;

Recycling of final rinse-water for reuse in subsequent rinsing; Recovery of whey and deployment of membrane processes to filter wastewater;

Reduction in the proportion of pollutants in water before it goes to the treatment plant thanks to the reinforcement and systematization of controls;

Installation of waste water meters and turbidity meters designed to measure and monitor changes in load.

Control over purification Implementing best practices; Installing pre-treatment or post-treatment processes to optimize purifying plant efficiency. In 2016, pilot pre- treatment units were installed at certain sites and may be generalized if the trials prove conclusive; Installing devices for measuring chemical oxygen demand (i.e. the quantity of oxygen required to oxidize the organic matter contained in wastewater) and regularly monitoring results;

Use of new processes for the recuperation of phosphor.

Reducing undesirable smells Several measures assist in reducing undesirable odors:

Smell monitoring; Closed-loop control of ventilators; The installation of remote optical camera control of piping.

COMBATING CLIMATE CHANGE

About

150,000 tons of carbon equivalent saved in 2016 in France in comparison with 2010.

Our progress

Improving the carbon footprint of milk production

Since 2010, the Group s Responsible Dairy Sourcing program supports milk producers in the sustainable development of their farms and helps them reduce their environmental impact and improve their carbon footprint whilst at the same time improving their economic performance.

The policy of Responsible Dairy Sourcing involves six com- mitments:

Logistic arrangements respectful of the environment; Sustainable economic performance; Active dialogue with the parties concerned; Living and working in closer cooperation; Responsible social policies; Sustainable milk production.

Sustainable milk production involves 4 stages: Diagnosis of dairy farms; Identification of strengths and points for improvement; The offer of training and the encouragement of pooling of experience by farmers; Prioritization of action plans and the offer of support for their deployment.

The diagnosis, whose purpose is to measure the farm s per- formance in economic, environmental and social terms, is performed over 10 indicators:

Profitability of the farm; Financial autonomy of the farm; Sustainable management of resources; Carbon footprint; Animal wellbeing; Food autonomy of the herd; Biodiversity; Soil fertility; Quality of life of the farmer; Management of the farm.

To perform diagnosis and help farmers engage in actions for improvement, partnerships have been concluded with several organizations including the French Institute of Farming, INRA, IAD etc.

Producers supplying the Group have attested to the positive effects of the approach. The following actions are typically deployed:

Vegetative cover of land; Limitation of phytosanitary treatments and inputs of fertil- izers;

Preservation of hedges; Less purchasing of food complements; Promotion of best farming practices.

Energy production and transformation Systematic measurement of boiler yields and periodic per- formance appraisal;

Replacement of old boilers with new boilers providing higher yields (a plan has been developed and progress is regularly monitored);

Renovation of cooling equipment to increase performance; Modernization or replacement of air compressors; Replacement of lighting by low consumption appliances; Installation of speed controllers.

Energy distribution Lagging; Pressure reduction of fluid networks; Tracking of compressed air leaks and inspection of steam network bleeders.

Energy consumption Development of metering and monitoring of yields; Plan for renovation and enhancement of cleaning-in-place equipment;

Deployment of membrane-based processes in partial or full replacement of evaporators.

Energy audits, mandatory in France and in certain other European countries, encourage consolidated effort. In the Group, these audits are conducted to a higher standard than the regulatory obligations and help accelerate progress.

Structure of energy consumption The main change in 2016, as in 2015, has been the fall of 17.8% (like-for-like) in fuel oil consumption.

Structure of energy consumption in 2016 in TJ (Like-for-like, all locations)

Electricity Gas Fuel oil

Motor fuel Other energies

12.4%

3.5%

8.7%

28.4%

47.0%

Structure of energy consumption in 2015 in TJ (Like-for-like, all locations)

11.7%

Electricity Gas Fuel oil

Motor fuel Other energies

3.4%

10.3%

27.3%

47.3%

Renewable energies

3 sites in Brazil and one in France, the Fromagerie d Illoud which manufactures Caprice des Dieux, are equipped with wood boilers. Local supply is preferred and in France, the wood consumed is sourced from renewable forests managed by the Office National des Forêts.

In France, our Le Tholy site equally makes use of the hydro- electric potential available locally.

PREVENTION OF POLLUTION

74.5% of non-dangerous waste is recycled.

Our progress

Reducing industrial waste

The quantities indicated are those evacuated in 2016; sub- standard products are not included.

Like-for-like, non-dangerous and dangerous waste for our production sites rose by 2.7%.

The change is mainly attributable: For non-dangerous waste, to increased packaging reflect- ing the trend in product mix; For dangerous waste, to extensive work on cleaning, clearing and asbestos removal (accounting for over a third of dangerous waste in 2016).

74.5 % of non-dangerous waste is recycled by type.

The measures taken to reduce waste include: Reduction of the weight of packaging; Cooperation with suppliers to reduce packaging; Purchase priority for the least dangerous products for a given level of quality; Selective sorting; Recycling of containers; Specific recycling of bio-waste.

Quantities of waste generated (Like-for-like/production sites) in thousands of tons

2016

2015

48.9

47.6

Non-dangerous industrial waste Dangerous industrial waste