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

Risk assessment procedures 3.6.2.1 The Group has introduced evaluation procedures for its affiliates and suppliers, carried out by the Group’s teams or in association with independent bodies, to identify and prevent the risk of serious violations of Human Rights and fundamental freedoms and health and safety breaches. Human Rights Environment Company activities In view of the risks faced by Pernod Ricard, the Group has implemented a system of internal control and risk management to better forecast and control them. The principles and procedures of internal control and risk management are described in Section 2 “Corporate governance and internal control”. These principles apply to all Group affiliates and employees. The Group sends all affiliates a self-assessment questionnaire every year, in which they must state whether they are compliant with Group policies. This questionnaire helps the Group assess the processes that are implemented to identify and prevent certain ethical risks. The reliability of the responses to these questionnaires is confirmed in a letter of representation signed by the Chief Executive Officer and Chief Financial Officer of each entity. In addition, the Legal Department works with the internal audit team to conduct a number of compliance audits each year at certain affiliates. Health and safety With the “iSay” survey, Pernod Ricard can measure the effectiveness of its action plans for all Group employees (see p. 93). Protection of insured capital and the prevention of major industrial risks: more than 60 industrial sites audited each year (see p. 117) Annual audit of Brand Companies as part of their ISO 14001 certification.

Complaints handling system (see p. 94)

External audit of the five industry pledges and the Responsible Marketing Panel (see p. 95) Annual audit of Brand Companies as part of their OHSAS 18001 (Occupational Health and Safety) and ISO 22000 (Food Safety) certification.

Supplier and subcontractor activities

Proactive supplier analysis across multiple priority levels and SMETA audit for high priorities. (see Blue Source process, p. 98)

Introduction of an early warning 3.6.2.2 and whistleblowing system

Monitoring system for the measures 3.6.2.3 implemented Pernod Ricard has monitoring procedures and systems in place for Human Rights and health and safety and the environment. The aim is to ensure that the monitoring plan is properly implemented and continually updated: internal reporting system and indicators for monitoring the ● implementation of the actions undertaken. The results have already been extensively published and audited with complete transparency in this report (see Chapters 2, 3 and 4 in particular). the European Works Council meets every year and follows up on the ● implementation of the European agreement between Pernod Ricard and EFFAT. It also identifies employment best practices and areas for improvement (see p. 93). the role of the Nominations, Governance and CSR Committee is to ● assess the relevance of the Group’s S&R commitments and to oversee their implementation.

To provide employees with day-to-day support, Pernod Ricard encourages dialogue and trust, allowing everyone to express their point of view and voice their concerns. The Group’s Code of Business Conduct advocates a “Speak-up policy”, calling on all employees to inform management (their Line Manager, Legal Department, HR Department, etc.) of any suspicions they might have regarding a practice or situation deemed to be contrary to or inconsistent with this Code, the associated policies or any legal or regulatory standard. During FY19, Pernod Ricard will launch a Group-wide early warning system as an alternative to the “Speak-Up” procedure described above. This will allow people who so wish to warn the Group in a safe and confidential manner. Hosted by a third party, Speak-Up will be available 24 hours a day, seven days a week. Each country will have its own dedicated telephone number for reports, which can also be submitted using an online form. Any report deemed to be serious will be the subject of an internal analysis and investigation conducted under the aegis of an Integrity Committee comprising the following Group-level functions: Legal, Internal Audit, Human Resources and CSR. If any violations are identified, the Integrity Committee will examine their severity and decide on the measures to be taken. Pernod Ricard will ensure that no disciplinary action is taken against anyone reporting a violation in good faith.

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