PERNOD-RICARD - URD 2020-21

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

The Group believes that regenerative agriculture is a significant part of the solution. This global approach looks at the system as a whole in order to enrich soil life and its natural fertility, improve water retention capacity, and protect and enhance biodiversity. In the long term, regenerative agriculture improves the vitality of plants, maximises carbon storage in the soil, ensures a high-quality harvest and stabilises yields. The terroirs will thereby be more resilient in the face of the effects of climate change, and will achieve a sustainable improvement in the livelihoods of farming communities. During FY20 Pernod Ricard defined its Sustainable Agriculture Key Principles. This document presents a set of best practices related to landscape management, biodiversity, plant health and soil life, water, human rights and relations with suppliers. Thus, the Group intends to gradually move away from conventional models to reduce the various pressures on resources (for example, by implementing alternative practices that avoid the use of synthetic inputs) and promote regenerative agricultural models. This reference document covers all the different contexts and agricultural systems in order to engage in a continuous improvement process. Pernod Ricard’s agricultural footprint 3.3.1.2 A terroir represents the origin of a culture in particular and has unique characteristics in terms of climatic conditions, type of soil, ecosystems and the know-how of the people and communities who work and live there. For Pernod Ricard, this means nearly 350 terroirs rooted in 66 countries around the world. The total amount of agricultural raw material used is around 2.7 million tons made up of: a variety of grain (wheat, barley, rye, maize, rice, sorghum); sugar cane, agave, and sugar beet; flavouring ingredients with a specific attention to nine of them, which are considered as iconic for the Group’s brands (coffee, coconut, fennel, star anise, licorice, juniper, coriander, gentian and orange); 17 wine-growing countries, eight of which have vineyards directly operated by Pernod Ricard. The total footprint of these terroirs is estimated at around 324,700 hectares.

Some of these terroirs are directly operated by Pernod Ricard: 5,631 hectares are dedicated to vineyards in seven different countries: New Zealand (45%); Australia (24%); France (12.5%); Argentina (8.5%); Spain (5.6%); United States (2.5%); China (1.9%); 990 hectares are dedicated to agave crops in Mexico. The environmental footprints of our vineyards are monitored and analysed each year in order to optimise practices and minimise the pressure on resources. These elements are no longer communicated as of this year, although they are still monitored and analysed, because, in line with our strategy, we are working on a new and more systemic indicator which will aim to reflect the level of regeneration of these vineyards. Moreover, because they represent less than 3% of the total surface area used to produce the agricultural raw materials necessary for the Group’s needs, these impacts can be considered as relatively minor. BREAKDOWN OF AGRICULTURAL RAWMATERIALS (TONNES)

14,521 23,163 Rye

Agave 123,771 Potatoes 32,819

Other flavouring ingredient 14,370 Key flavouring ingredients

Various cereals 143,587 Sugarbeet 163,162 Wheat 204,727

Sugar cane 909,825

Grapes 263,986

Barley 293,428

Broken rice 264,605

Maize 275,472

Action plans and next steps In order to manage risks within agricultural supply chains, address the duty of care, and achieve our nurturing terroir ambition, the Group has implemented a strategy divided into three levels (Figure 2). The aims are : to map the different terroirs to reach full traceability, to assess environmental and social risks that may be present on these terroirs, and finally implement eventually sustainability programmes.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021