PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

3 SUSTAINABILITY & RESPONSIBILITY (S&R) VERIFYING NON-FINANCIAL INFORMATION

VERIFYING NON-FINANCIAL INFORMATION 3.7

Note on methodology relating 3.7.1 to non-financial reporting

respect of its employees all over the world. The requests made to affiliates are influenced by a number of reference texts such as the Grenelle 2 law or ISO 26000. Scope of societal reporting 3.7.1.3 Indicators relating to responsible drinking and communities are included in the social report. The indicators cover all Pernod Ricard affiliates (Brand Companies and Market Companies) which are required to include their societal information in the social report, with the exception of certain entities. This is because the roll-out of the S&R model and the associated action plans are managed by a sole affiliate when several affiliates are situated in the same country. These entities do not have to give information to the Group’s reporting system. As regards the ethical monitoring of advertising by the Responsible Marketing Panel (RMP), controls are mandatory for all the Strategic International Brands and the Strategic Wine brands (which account for around 78% of advertising and promotion investments). Since February 2013, they have also been mandatory for Strategic Local Brands (which account for around 12% of advertising and promotion investments). Controls encompass advertising, the Internet and sponsorship. Since September 2013, the Panel has reviewed the Code’s compliance with all new products. Like all Group advertising, promotions must also comply with the Code. In cases of ethical issues, it is recommended that marketing teams submit their proposed promotions to the Panel. Scope of environmental reporting 3.7.1.4 Pernod Ricard’s environmental reporting relates to production sites and vineyards under the Group’s operational control on 30 June of the financial year in question and which have been in operation throughout the entire year. It does not cover administrative sites (head offices or sales offices), or logistics warehouses when these are located outside industrial sites (this relates to only a few isolated warehouses), since their environmental impacts are not significant compared to those located within industrial sites. The FY18 reporting covers: 90 manufacturing sites. This figure is lower than in 2016/17 following ● the disposal or closure of five sites in France, Spain, China and Scotland, and the inclusion in the reporting scope of two production sites in Germany and the United States. The industrial scope taken into account for this financial year therefore covers a production volume of 1,030 million litres (finished product either bottled or in bulk), compared with 1,026 million in 2016/17, and a volume of distilled alcohol of 233 million litres (measured as pure alcohol), unchanged from 2016/17. Comments on the results are provided in the different sections of the subsection “Protect the planet” in this document; 5,913 hectares of vineyards, located mainly in New Zealand, ● Australia, France, Spain, the United States, Argentina and China. Key results related to vineyards are set out in subsection “Sustainable agriculture and performance of our vineyards”.

Period & scope of reporting 3.7.1.1 Reporting of corporate, environmental and societal data is performed annually and relates to the period from 1 July 2017 to 30 June 2018. Unless otherwise stated, this data relate to activities under the Group’s operational control. Scope of social reporting 3.7.1.2 The social analyses in this report are based on all Group entities that have reported data on their employees for the period concerned. When a company joins the Group scope in the time period concerned and is controlled by the Group, its corporate data is immediately included in full in the figures, regardless of the equity stake held by Pernod Ricard. At each financial year-end, the list of entities in the Group’s social reporting is compared to the one in the Financial Reporting to ensure its completeness. In FY18, reporting covers 111 entities. The consolidation scope and level of detail for corporate data have changed since FY18: in France, a new entity has been created, Pernod Ricard La Voisine, ● where a large part of Pernod Ricard University’s training courses are taught; GTR Headquarters, based in London, has been added to the Global ● Travel Retail scope, while Travel Retail Europe is now Travel Retail EMEA. Under the terms of their employment contracts, GTR employees must now be accounted for by the local legal entity in the country where they provide most of their services. PR Travel Retail Pacific and PR Travel Retail India are now part of PRW Australia and PR India respectively; in Europe, PR Bosnia closed this year and is no longer part of PR ● Adriatics; in Asia and the Pacific, PR Singapore Rep Office Cambodia is now PR ● Cambodia; Helan Mountain is now part of PR Asia, while Seagram China, whose core business is the sale of Helan Mountain wines to Chinese consumers, began trading this year; there were no changes for Pernod Ricard North America in FY18. ● The Asia-Pacific Region includes the Asia distribution network and the Group’s Wines business, which also includes the Pernod Ricard Winemakers Spain affiliate, based in Spain, and the Pernod Ricard Winemakers Kenwood and Pernod Ricard Winemakers Mumm Napa affiliates, based in the United States. Pernod Ricard’s African activities are managed by Pernod Ricard’s Europe, Middle East, Africa and Latin America Region and the related data are therefore included in the data for this Region. The social reporting indicators are selected to provide the Group with a reliable and accurate picture of its presence in the world. The data collected enables Pernod Ricard to be increasingly socially responsible in

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