LONDON, June 18 (Reuters) - Decisions based on

sustainability need to offer financial returns to ensure they

attract investors, Danone finance chief Juergen Esser

told Reuters.

Esser's comments are a departure from those of other

executives in the industry who have tended to gloss over the

need for sustainable strategies to deliver financial returns.

While they have won support from some shoppers, they have

increasingly drawn criticism from investors.

Danone's efforts to be more sustainable include changing the

way it runs its facilities to reduce energy consumption, Esser

said in an interview with Reuters on the sidelines of the

Responsible Business conference in London.

He said that had led to "a significant payback" for Danone,

but declined to give details.

"On top of that, it drives competitive advantage: it allows

us to come to our customers and partners and say: 'you asked us

to help you to decarbonise - here this product is now with 20%

less carbon emissions," Esser added.

From restaurants to retailers, companies are racing to cut

emissions in their third-party supply chains, known as scope 3

emissions, and meet lofty sustainability goals. These companies

rely on the consumer firms that supply them with food and other

goods to help them meet these targets.

"The reality is you need to find a different way to create

an incentive to invest into sustainability," Esser said.

"There's no other way to do it without competitive edge. Because

investors do not compromise on financial returns."

Janus Henderson, portfolio manager Robert Schramm-Fuchs,

said he agreed with Esser's position.

"Things are not sustainable if there's not a positive

commercial impact behind it," Schramm-Fuchs said.

"If you do things that put your company in a disadvantaged

position, others will take market share - your employees, your

stakeholders will lose to outsiders. There's no point in doing

things to disadvantage your company competitively."

Danone is hosting an investor conference in Amsterdam on

Wednesday and Thursday to discuss topics including its

sustainability measures with shareholders.