PERNOD-RICARD - URD 2020-21

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

Risk/ opportunity

Sub-risk/ opportunity

Definition

Subsections of section 3

People development & safety

Working conditions and health & safety at work

Risks: Pernod Ricard’s employees and contractors in production sites may be exposed to occupational injuries (burns, physical trauma, falls, toxic inhalation, etc.) or in most serious cases permanent disability or death mainly due to industrial processes or as a result of major industrial accidents (fires, explosions, etc.) or natural disasters. In addition, despite strict sanitary measures, employees may have been exposed to Covid-19. Repeated lockdowns and working from home measures may have caused disruptions in the social ties and work-life balance of employees. Other impacts on the Group could include reputational and operational difficulties. Risks: severe weather events (tornados, floods, etc.) or natural disasters may damage physical assets at production sites. Moreover, rising temperatures and changing seasons may alter industrial processes and the availability of ingredients. Pernod Ricard might be slow to react to such climate change and fail to adapt its supply chain resulting in financial losses and operational disruptions. Risks: these phenomena may also damage suppliers’ physical assets and affect the quality, quantity and geographical location of agricultural raw materials, resulting in operational disruptions. Risks: due to the industrial nature of its activities and fast-changing environmental regulations, Pernod Ricard may fail to be fully compliant with new regulations and respond to stakeholder expectations. This may cause reputational damage. Moreover, distilleries emit CO 2 through the energy they use. Pernod Ricard may be impacted by energy supply and price volatility. In addition, Pernod Ricard most water-intensive activities may impact water availability and could cause operational disruption and financial losses. This is especially true where they are located in water stressed areas. Opportunities: by reducing energy consumption and associated CO 2 emissions and by building an offsetting and insetting strategy for its residual carbon emissions, Pernod Ricard can reduce its operating costs and anticipate carbon regulations in a volatile market. By implementing a virtuous circular mindset, Pernod Ricard could minimise waste at each step of its value chain and help preserve natural resources. Moreover, through good waste management, Pernod Ricard could transform waste into potential new raw material.

3.3.2 Valuing People 3.3.2.3 Employee engagement & culture, working conditions and health & safety 3.3.4 Responsible Hosting 3.3.4.6 Employee engagement

Physical risks of climate change and natural disasters

Pernod Ricard production sites

3.3.1 Nurturing Terroir 3.3.1.1 Support communities to regenerate ecosystems and tackle climate change 3.3.1.4 Impactful programmes on regenerative agriculture and biodiversity 3.3.3 Circular Making 3.3.3.2 Climate change: reduction and adaptation 3.3.1 Nurturing Terroir 3.3.1.4 Impactful programs on regenerative agriculture and biodiversity 3.3.1.1 Support communities to regenerate ecosystems and tackle climate change 3.3.3 Circular Making 3.3.3.2 Climate change: reduction and adaptation 3.3.3.3 Preserve water resources 3.3.3.5 Reduce waste

Pernod Ricard suppliers

Environmental impacts of operations

CO 2 emissions GHG emissions

Water management Waste management

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021