PERNOD-RICARD - URD 2020-21

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

Policies

Targets

Progress in FY20

Progress in FY21

2030 S&R Roadmap

100% of agricultural raw materials (annual purchases) covered by risk mapping by 2022.

Terroir risk mapping tools developed to assess: priority terroirs with a complete tool exploring eight environmental and nine social risks; terroirs from key agricultural raw material with a simplified tool; all the terroirs assessed under

86% of agricultural raw materials (annual purchases) covered by mapping, started with priority terroirs this year.

the Partner Up process (see subsection 3.3.2.5 “Responsible supply chain”).

3.3.1.3

An agile and ambitious journey

RISK MITIGATION PROJECTS For each priority terroir, Pernod Ricard is committed to mitigating the negative effects of practices by setting up innovative projects, by implementing new technologies or training farmers on alternative practices. FOCUS ON THE WATER FOOTPRINT OF VINEYARDS As perennial crops, vineyards are particularly sensitive to the effects of climate change and in particular droughts, fires or even frost. The increased frequency and severity of such events is a trend that has been confirmed over the past three years in our vineyards. Despite the use of precision farming tools like drip irrigation systems, we are seeing an increase in our water consumption, which amounts to 12.5 million m 3 this year. Improving the resilience of vines in the face of water scarcity will be at the heart of pilot programmes on regenerative viticulture. FOCUS ON THE AGRICULTURAL CARBON FOOTPRINT The carbon footprint of agricultural raw materials represents 32% of the Group’s scope 3 (see subsection 3.3.3.2 “Climate change: reduction and adaptation”). It is therefore essential to define robust calculation methodologies and share them with the different terroirs. FY21 was dedicated to identifying the raw materials that emit the most GreenHouse Gas (GHG), then defining calculation methodologies specific to each category. Thus, a methodology for calculating GHG emissions for cereals was designed in collaboration with the affiliates and supported by external expertise. Depending on the weight of the material in the overall footprint of agricultural products, Pernod Ricard will assign a generic, semi-specific or specific emission factor. Subsequently, significant work will be carried out in partnership with its strategic suppliers to reduce these emissions, either by adapting agricultural practices (crop fertilisation for instance) or by upgrading industrial processes.

towards sustainable terroirs The Group ais committed to implementing resilient agricultural practices by building strong and fair relationships with its suppliers. Action plans and next steps CERTIFICATION Pernod Ricard aims to certify all its key raw materials against recognised sustainability standards. In order to select the best standards, in line with the Sustainable Agriculture Key Principles, the Group has developed a benchmarking tool. The Group also gives its subsidiaries the opportunity to develop their own standards with their local partners. All must then be certified by third parties. The standards are chosen to cover most of the high and medium risks identified through the terroir risk mapping analysis. For example, given the risk profiles for the different sugar cane terroirs, the Bonsucro certification has been identified as the most suitable and will be deployed to all our suppliers. This approach was designed to adapt to each terroir by taking into consideration local cultures, work habits as well as the potential for transforming practices.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021