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 key raw materials produced or sourced according to selected sustainability standards. 100% of high/medium risk priority terroirs covered by mitigation projects (water, agrochemicals…). Reduce carbon footprint of agricultural raw materials to contribute to the Group overall Scope 3 target (50% intensity reduction) (see subsection 3.3.3.2 “Climate change: reduction & adaptation”).

Benchmarking tool to assess each standard against the Group’s Sustainable Agriculture Key Principles.

28% of key raw materials produced or sourced according to selected sustainability standards. Full risk mapping conducted for 93% of priority terroirs (55/59). 41 terroirs were considered to have a high or medium level of risk. Harmonised GHG calculation methodology developed for cereals.

3.3.1.4

Regenerative agriculture and

Following a complete diagnosis of the two French terroirs, Martell cognac and Mumm and Perrier-Jouët champagnes, set up a pilot programme to explore three main areas: soil life, plant health and nutrition, and landscape management. Various trials are implemented to test combinations of cover-crops, develop grape varieties resistant to climate constraints, or even implement specific technologies or machines. In the south of France, where Irish Distillers source their maize, the Group has enrolled with 27 farmers in the regenerative index measurement to identify their areas of progress and transform their practices, such as no or low tillage. During this project, the Group is also working to develop a fair economic model to ensure long termmutual commitments. In India, Pernod Ricard India Foundation’s flagship programme WAL (Water, Agriculture, Livelihoods) aims to foster water resilience, promote sustainable and regenerative resource management while securing the livelihoods of disadvantaged communities such as smallholder farmers, women and young people. In Mexico, Kahlúa works with coffee-producing communities and with local NGO Fondo Para La Paz to support agricultural practices like the planting and development of climate change resistant varieties as well as fair remuneration, with a specific focus on women empowerment. In the Philippines, Malibu works with 500 coconut farmers to increase yields, improve access to water and sanitation, provide training and technical support, support young people and children to prevent migration for work and improve the whole livelihood of the community.

biodiversity preservation programmes Regenerative agriculture can be considered as a “nature-based solution” to mitigate climate change, protect ecosystems and biodiversity, restore the soil and improve the livelihoods of farmers. Action plans and next steps The key to success will be to define appropriate “transition paths” for different types of agricultural production. For example, transitioning to regenerative practices for large industrial corn farmers in the USA will require different support and milestones than a transition for small Indian rice farmers. The programmes aim to better understand and take into account local contexts, measure the dynamics of natural cycles, train partners in regenerative practices and design continuous improvement plans over the long term. To support this journey on priority terroirs, Pernod Ricard decided to join the French movement PADV ( Pour une Agriculture Du Vivant ). Thanks to the regeneration index they have developed, the Group measured the starting point of its partner farms and then put in place levers to improve the resilience of the terroirs. For its own vineyards, the Group commits to set up regenerative viticulture pilot programmes within its own vineyards.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021