PERNOD-RICARD - URD 2020-21

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

ACTION PLAN FOR NURTURING TERROIRS

ALL PERNOD RICARD’S AGRICULTURAL TERROIRS

+350

Raw materials +100

+66

A terroir means the supply of one agricultural raw material from one specific location.

Commitments:

Responsible Procurement process: Partner Up

Weight: 100% of agricultural raw material annual spent

Terroirs

Countries

TERROIRS FROMKEY AGRICULTURAL RAWMATERIALS

Commitments:

List: Cereals and malted cereals, Cane and beet products, Grapes products, Agave, and 9 key flavouring ingredients: Coffee, Coconut, Fennel, Badiane, Licorice, Juniper, Coriander, Gentiane, Orange.

Simplified risk mapping analysis Certification on Sust. Agri. Standards Carbon: generic or semi-specific EF Mitigation project on high risks identified

Target : 100% by 2022

Target : 100% by 2030

28%

128

Ongoing

Weight: 98% of annual spent Exclusions: Other flavouring ingredients

Terroir risk mapping

Certification (FY21)

Terroirs

PRIORITY TERROIRS

Commitments:

A priority terroir is selected among the key agricultural raw material because:

Full risk mapping analysis Certification on Sust. Agri. Standards Carbon: specific or semi-specific EF Mitigation project on high/medium risks identified Regen Ag & Biodiversity programmes on selected terroirs

• •

they represent a very large amount of the raw materials purchased and increase the probability of the associated risks occurring; they are very iconic as they represent a star ingredient for a strategic brand, a high level of sensory contribution or an ingredient highlighted by the brand with a high reputational risk.

Target: 100% by 2022

59 55

Priority terroirs

Terroir risk mapping

Weight: 94% of annual spent

25

High

Number of terroirs

16

Medium

14

Low

Fifty-nine terroirs have been identified as strategic priorities in the framework of the action plan, since they represent 94% of annual purchases (by spend) and supply key or iconic raw materials. Fifty-five of these fifty-nine terroirs have been subject to a full risk mapping analysis: 25 were assessed with a high risk level, 16 with a medium risk level and 14 were judged at low risk. Four priority terroirs are still under investigation.

Measuring the carbon footprint is undertaken as part of a different analysis because it requires the development and use of specific tools (see subsection 3.3.1.3). Learnings from the terroir risk mapping demonstrate the crop sensitivity to the effects of climate change, including high sensitivity to drought, as well as its impacts on ecosystems (biodiversity, soil and water) and on communities.

FREQUENCY OF POTENTIAL RISKS ON PRIORITY TERROIRS

Defenders of rights Freedom of association Waste management Discrimination Compensation - wages Child labour Deforestation Health communities Land rights Forced labour Water pollution Biodiversity Health & safety Water availability Soil quality & pollution Climate change

0

10

20

30

40

50

Risk occurrence

105

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021