PERNOD-RICARD - URD 2020-21

____ 3. SUSTAINABILITY & RESPONSIBILITY THE FOUR PILLARS OF THE GOOD TIMES FROM A GOOD PLACE ROADMAP

Risk/ opportunity

Sub-risk/ opportunity

Definition

Subsections of section 3

Packaging life cycle management

Packaging and POS development Packaging and POS end-of life

Risks: packaging and point-of-sales materials are some of the Group’s most carbon-intensive activities and generate large quantities of post-consumer waste. Inadequate sustainable packaging policy or innovation could limit Pernod Ricard’s ability to attract clients and consumers. The lack of recycling infrastructure or consumer awareness in some markets could hinder the Group’s efforts in addressing packaging end of life at local level resulting in reputational damage and financial loss. Opportunities: by minimising waste at each step of its packaging life cycle and exploring the use of alternative ways to distribute its products, Pernod Ricard can preserve natural resources and reduce costs. Risks: Pernod Ricard’s product quality may be subject to an undetected deterioration (toxic contamination, alteration of taste, introduction of foreign objects into the bottles etc.), leading to health hazards, reputational damage, financial liabilities and product recalls. Risks: Pernod Ricard’s reputation may be impacted by consumers’ misuse of alcohol. Its activities may also be impacted by ongoing anti-alcohol sentiment, excessive and/or punitive regulations (restrictions on sales and marketing, availability of its products, increased taxes and duties) leading to lower revenues and profits without effectively reducing the harmful use of alcohol. Opportunities: Pernod Ricard’s Premiumisation ambition leads to drinking less but better, thus accompanying its ambition in responsible drinking. The Group’s drive on digital marketing enables targeted advertising to further enable self-regulation even better, avoiding inadvertent exposure of minors or non-drinkers.

3.3.3 Circular Making 3.3.3.4 Circular packaging and distribution 3.3.3.2 Climate change: reduction and adaptation

Quality, food safety and product compliance

3.4 Ethics & compliance 3.4.1.1 Quality, food safety and product compliance

Alcohol in society

The harmful use of alcohol by consumers Excessive and/or punitive alcohol regulations implemented by Government to tackle harmful alcohol use

3.3.4 Responsible Hosting 3.3.4.1 Responsible drinking programmes and campaigns 3.3.4.2 Responsible marketing 3.3.4.3 Responsible e-commerce 3.3.4.4 Responsible experiences 3.3.4.5 Consumer information 3.4 Ethics & Compliance 3.4.1.5 Transparency and integrity of strategies and influencing practices

3.3

The four pillars of the Good Times from a Good Place roadmap

3.3.1

Nurturing Terroir

3.3.1.1

Support communities to regenerate ecosystems and tackle climate change

Terroir means earth or soil in French, the birthplace from which all of Pernod Ricard’s products take their character. All the Group’s brands come from nature and take their identity from the terroirs where their natural ingredients are grown. Pernod Ricard is therefore responsible for supporting and promoting sustainable agriculture practices with three objectives: to conserve ecosystems and natural capital, wild or cultivated, by preserving habitats and

Objectives and policies The Group’s core business is inextricably linked to well-functioning ecosystems. Any disruption to one component (soil, water, climate, landscape…) has a direct impact on natural balances. Pernod Ricard is therefore very attentive to each element in order to better understand the mechanisms at work and restore the natural balances. The Group believes in the strength of a holistic and systemic approach to agriculture that covers the entire farming system, maximises the shared benefits and, ultimately, the overall resilience of the terroirs over the long term: maximising positive interactions between agricultural and wild ecosystems; paying particular attention to soil life and its ability to restore carbon cycles; reducing dependency on agrochemicals; managing water resources sustainably; taking care of the people who work the land every day.

trophic chains; to tackle climate change, by reducing its greenhouse gas emissions, and exploring potential carbon sinks within its agricultural chains, as well as adapting the choice of its crops and agricultural practices; to support agricultural communities and smallholders, in order to develop practices, improve livelihoods, access to health and education and more generally, the economic empowerment of these local populations.

103

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021