PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) PRESENTATION AND IMPLEMENTATION OF THE MONITORING PLAN

Mapping the Group’s major risks relating to due diligence Pernod Ricard faces a range of internal and external risks. The main risks currently estimated by the Group are reported in the Section 4 “Management report” under the subsection “Risk management”. The mapping processes described below were drawn from Pernod Ricard’s existing risk management tools, such as those described earlier. Risks of serious violations of Human Rights and fundamental freedoms Operating in more than 70 different countries and mindful of the new challenges posed by globalisation, Pernod Ricard advocates respect for all internationally recognised Human Rights and fundamental freedoms (see p. 101). The Group’s success is intrinsically linked to the way in which Pernod Ricard manages its activities, acting responsibly throughout the value chain and guided by its values: entrepreneurial spirit, mutual trust and a strong sense of ethics. On that basis, Pernod Ricard has identified two levels of threat to Human Rights and fundamental freedoms. Internally, Pernod Ricard takes into account the principles of fundamental rights at work. Specifically: the elimination of discrimination in respect of employment and ● occupation; the elimination of all forms of forced or compulsory labour; ● respect for the freedom of association and the right to collective ● bargaining. Externally, Pernod Ricard is in constant contact with a large number of suppliers in various business sectors: agricultural raw materials, packaging, maintenance and co-packing, marketing services, etc. The Group endeavours to be vigilant in identifying the potential negative impacts, direct or indirect, of its business in order to prevent them and, if necessary, remedy them. The Group requires each affiliate to work with suppliers who agree to comply with the Supplier CSR Commitment . The following rules define the exemplary Human Rights record expected from suppliers: prohibition of discrimination; ● prohibition of child labour; ● prohibition of forced and compulsory labour and disciplinary ● measures; freedom of movement; ● occupational health and safety; ●

Risks of serious harm to the environment Environmental protection seeks to conserve natural resources, preserve the environment in its current state and, where possible, reverse environmental damage. These measures are intended to prevent serious harm to the environment caused by the following: pollution: gradual or accidental pollution of the air, soil, surface water ● and groundwater due to the production process and non-compliance with regulatory discharge limits; consumption of resources: excessive consumption of water ● (distilleries), fossil fuels or packaging materials (glass, cardboard, etc.); climate change: unpredictable harvests of crops used as a raw ● material, climate events and increased carbon taxation. For its suppliers and subcontractors, environmental threats mainly include the risks of pollution, damage to ecosystems, depletion of natural resources and dependence on fossil fuels. Risks of serious injury Health and safety risks can occur at all levels of the value chain. Potential victims of health and safety risks include employees in the workplace as well as final consumers. Examples of health and safety risks include: Dangers to consumer health and safety: risks of contaminant poisoning; ● risks related to excessive and inappropriate alcohol use. ● For employee health and safety: industrial accidents; ● risks of workplace accidents or occupational illness; ● workplace safety. ●

working time; ● compensation; ● freedom of association and right to collective bargaining. ●

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