As the global dairy industry faces mounting pressure to reduce its environmental footprint, leading brands are stepping up, or stumbling, in their responses.
This comparative analysis explores the sustainability performance of four major dairy companies, Danone, Lactalis, Arla Foods, and Friesland Campina, across ten key environmental criteria.
From carbon footprint to recycling rates, from energy consumption to supply chain transparency, each profile provides a nuanced snapshot of ambition versus reality.
The aim: to understand who is truly leading the way toward sustainable dairy, and who is still lagging behind despite bold promises.
Danone
One Planet. One Health
Criteria
Carbon Footprint, Low
Danone has made progress in cutting its carbon footprint, especially in areas like energy use and packaging, but it still struggles with emissions from agriculture and dairy. While its direct emissions have dropped significantly, the impact of farming and land use has barely improved, and methane emissions, a major issue in dairy production, have even risen slightly since last year.
This shows that while Danone is taking steps in the right direction, its biggest environmental obstacle remains in the very foundation of its business: the way it sources and produces its food.
Ecological Impact, Low
Danone’s ecological impact presents a clear dilemma between sustainability efforts and ongoing environmental concerns. On the positive side, the company is investing in regenerative agriculture, aiming for net-zero emissions, and forming partnerships to reduce dairy-related greenhouse gases.
It has also taken steps to avoid deforestation-linked supply chains, such as cutting out Brazilian soy. However, these efforts are overshadowed by persistent issues like plastic pollution, Danone remains one of the world’s top plastic users, and controversial water extraction practices, which have sparked local resistance, particularly in drought-affected areas.
While Danone positions itself as a leader in sustainability, its heavy reliance on industrial agriculture, plastic packaging, and water-intensive operations raises doubts about the true impact of its environmental commitments.
Energy Consumption, Medium
Danone has made significant efforts to improve energy efficiency and increase its reliance on renewable energy, reducing energy intensity by 46% since 2000 and aiming for 100% renewable electricity by 2030. However, these goals come with challenges.
The company’s dairy-heavy supply chain remains energy-intensive, making reductions more difficult. Additionally, while Danone promotes progress through initiatives like the “Re-Fuel” program, external assessments point to gaps in transparency, with limited detailed reporting on energy use across different regions. Variations in access to renewable energy infrastructure further complicate global implementation.
While Danone is making strides, the scale and complexity of its operations mean that transitioning to cleaner energy will require ongoing adaptation and improved oversight.
Freight Density, Low
Danone’s freight density data isn’t public, but it improves transport efficiency with 99% truck fill rates, eco-driving, and rail shifts cutting 450 trucks yearly, showing a push for sustainable logistics.
Recycling Rates, Medium
Danone has made progress in improving recycling rates, with 84% of its packaging now recyclable, reusable, or compostable, aiming for 100% by 2030.
However, recycled materials still make up only a small portion of its plastic packaging (10% in 2020), and overall plastic usage remains high, exceeding 750,000 tons in 2021. Despite partnering with companies like Veolia to improve waste recovery—boosting rates at some sites from 70% to 98%, Danone has consistently ranked among the world’s top plastic polluters.
While its recycling initiatives show commitment to sustainability, the scale of its plastic dependency raises concerns about whether these measures are enough to counterbalance its environmental impact.
Saving Levels, Medium
Danone’s cost-cutting efforts, including the “Protein” program and plant closures, helped drive a 4.3% revenue increase in 2024 and €3 billion in cash flow.
On sustainability, it aims to cut food waste by 50% by 2030 and eliminate landfill plastic by 2025. Balancing profitability with environmental goals remains a challenge.
Specific Product Monitoring, Medium
Danone integrates sustainability into product monitoring through responsible sourcing, environmental audits, and emission reduction targets.
Its policies aim to cut waste, emissions, and resource use, but their effectiveness depends on transparency and consistent implementation. However, specific data on sustainability monitoring within its product lifecycle is not publicly available.
Supply Chain Waste, High
Danone aims to cut food waste by 50% by 2030, achieving a 19.8% reduction by 2023. It optimizes inventory through digitalized planning and enforces sustainable sourcing to reduce resource waste.
Waste recovery measures improve efficiency, but efforts to minimize waste across its global supply chain still require refinement.
Sustainability Scorecards, High
Danone tracks sustainability through its Impact Journey framework and Regenerative Agriculture Scorecard, assessing areas like soil health, biodiversity, and water use. It has earned strong external ratings, including an AAA MSCI ESG score and a top ranking in the Access to Nutrition Index.
However, critics highlight issues like plastic waste, water resource exploitation, and supply chain concerns. Legal challenges and NGO pressure have pushed Danone to refine its sustainability strategy, but transparency and effective implementation remain essential to ensuring meaningful progress.
Water Management, Medium
Danone follows a 4R water management strategy (Reduce, Reuse, Recycle, Reclaim) and invests in conservation projects like the Evian Water Protection Institute to safeguard water resources.
However, its water extraction practices have sparked controversy, particularly in France and Spain, where locals accuse the company of depleting water tables, exacerbating drought risks.
While Danone promotes sustainability in water use, these conflicts highlight the difficulty of balancing commercial water bottling with long-term resource preservation and community needs.
Related to other brands
Danone’s overall sustainability score of 2.75 out of 5 reflects a company that is making genuine, yet uneven, progress. Its ambitions in renewable energy, food waste reduction, and sustainability tracking tools show promise, but persistent issues like plastic pollution, agricultural emissions, and controversial water practices undermine its environmental credibility.
The company’s future success in sustainability will depend not only on setting ambitious goals but also on transparent reporting, systemic change in its core operations, and consistent follow-through.
Number of criteria met by each brand:
- Danone 2.8 / 5
- Lactalis 3.3 / 5
- Arla 2.0 / 5
- Friesland Campina 2.8 / 5
ESCP Business School Team
Research developed by five curious international ESCP Business School students who have worked together to successfully complete their consulting project. They analysed four brands in four different categories -24 brands: electric cars EV, dairy products, computers, personal care, luxury apparel, fast fashion-, according to 10 environmental criteria.
- Alix AMMEUX: Dairy Products
- Hanna AMSELLEM: Electrical Vehicles
- Leonardo BERTINI COLLA: Computers
- Zackary BOISNEAULT: Personal Products
- Ariane DESPRES: Luxury Apparels
- Caterina GIUSTINIANI: Fast fashion
Sources
- Danone Universal Registration Document 2024: https://www.danone.com/content/dam/corp/global/danonecom/investors/en-all-publications/2025/registrationdocuments/urd2024accessibleversion.pdf
- Danone 2024 Mission Committee Report: https://www.danone.com/content/dam/corp/global/danonecom/investors/en-all-publications/2025/shareholdersmeetings/committeereportdanone2024.pdf.coredownload.pdf
- Danone Sustainability Dashboard 2023: https://www.danone.com/content/dam/corp/global/danonecom/investors/en-sustainability/reports-and-data/cross-topic/danonedashboard2023.pdf
- Danone Sustainability Portal: https://www.danone.com/sustainability.html
- Danone Water Policy 2024: https://www.danone.com/content/dam/corp/global/danonecom/about-us-impact/policies-and-commitments/en/2024/danone-water-policy-2024.pdf
- Lactalis Group News and Sustainability Updates: https://www.lactalis.fr/en/news/
- Lactalis UK & Ireland 2024 Sustainability Update: ttps://www.linkedin.com/posts/lactalis-uk-ireland_in-june-we-launched-our-2024-sustainability-activity-7227320150817935360-6Cyw
- Arla Annual Report 2024: https://www.arla.com/493f52/globalassets/arla-global/company—overview/investor/annual-reports/2024/arla-annual-report-2024-uk2.pdf
- Arla Annual Reports Archive: https://www.arla.com/company/investor/annual-reports/
- Arla Half-Year Results 2024: https://www.arla.com/company/news-and-press/2024/pressrelease/half-year-results-2024-arlas-robust-first-half-of-2024-is-paving-the-way-for-enhanced-sustainability-efforts/
- Arla Sustainability Portal: https://www.arla.com/sustainability/
- FrieslandCampina Annual Report 2024: https://www.frieslandcampina.com/uploads/2025/03/Annual-Report-2024-Royal-FrieslandCampina-NV.pdf
- FrieslandCampina Annual Report 2024: https://annualreport.frieslandcampina.com/
- FrieslandCampina Financial and Sustainability Reports: https://frieslandcampina.com/about-us/financials/financial-and-sustainability-reports/
- FrieslandCampina Sustainability Overview: https://www.frieslandcampina.com/sustainability/
- FrieslandCampina GHG Methodology Report 2024: https://www.frieslandcampina.com/uploads/2025/02/Greenhouse-gas-emissions-from-raw-milk-and-dairy-products-AR2024-Methodology-report-V1.3-external.pdf
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