PERNOD-RICARD - URD 2020-21

____ 3. SUSTAINABILITY & RESPONSIBILITY THE MAIN SUSTAINABILITY RISKS AND OPPORTUNITIES

Risk/ opportunity

Sub-risk/ opportunity

Definition

Subsections of section 3

Responsible supply chains

Responsible supply chains

Risks: supply chains in the beverage industry are diffuse and fragmented due to the multiplicity and diversity of actors - from agriculture to merchandising. Pernod Ricard may be legally involved with suppliers whose practices do not comply with Human Rights (child labour, forced/bonded labour, health and safety etc.) environmental standards (CO 2 emissions, toxic emissions etc.) or compliance and business regulations (corruption, fraud etc.). This might cause reputational damage, financial loss and legal liabilities. Risks: agricultural practices in Pernod Ricard’s supply chain may have various negative effects on the environment (soil degradation, poor water quality and availability, CO 2 emissions, biodiversity loss and deforestation) and on the Human Rights of farmers or local communities (remuneration of farmers, health and safety, child or forced labour, land grabbing). This might also cause reputational damage and legal liabilities. Moreover, climate change may alter crop quality and areas of production leading to increased prices or even the inability to source in a specific area or produce a specific brand. Risks: given the international scope of its activities Pernod Ricard may face compliance issues related to anti-corruption laws and other similar regulations, in its own operations or through its supply chain. This might cause reputational damage and financial loss. Risks: in light of the digital transformation of its activities and the increasing number of regulations, Pernod Ricard may face compliance issues related to data protection regulations (General Data Protection Regulation, California Consumer Privacy Act, etc.) and fail to protect the personal data of its consumers. This could cause reputational damage, liability and financial loss. changes in the aspirations of new generations, new global work outlook as a consequence of the pandemic and the future of work that may require a new set of skills or skill scarcity in specific domains, Pernod Ricard may have difficulties to attract and retain the skilled people it needs. This may cause reputational and operational difficulties and impact its financial performance.

3.3.2 Valuing People 3.3.2.5 Responsible Supply Chain 3.3.2.4 Human Rights

Sustainable agricultural supply chain

3.3.1 Nurturing Terroir 3.3.1.1 Support communities to regenerate ecosystems and tackle climate change 3.3.1.3 An agile and ambitious journey towards sustainable terroirs 3.3.1.4 Impactful programmes on regenerative agriculture and biodiversity 3.4 Ethics & Compliance 3.4.1.3 Prevention of corruption and anti-competitive practices 3.4.1.5 Transparency and integrity of strategies and influencing practices 3.4 Ethics & Compliance 3.4.1.2 Personal data protection

Compliance and business ethics

Anti-corruption & antitrust

Personal data protection

People development & Safety

Talent management Risks: due to the competitive talent market,

3.3.2 Valuing People 3.3.2.1 Talent management

Diversity & inclusion Opportunities: diversity and inclusion is a strategic top priority for Pernod Ricard, whose objective is to have management teams and a workforce that reflect the diversity of its consumers globally by fostering an inclusive organisational culture, creating an environment of equity, engagement and empowerment that facilitates everyone’s involvement in support of its business strategy.

3.3.2 Valuing People 3.3.2.2 Diversity & inclusion 3.3.2.4 Human Rights

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021