PERNOD-RICARD - URD 2020-21

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

Developed with numerous internal stakeholders, Pernod Ricard introduced its first Global Human Rights Policy in FY19 which is divided into three key sections: “in our own operations”, “in the supply chain” and “in our local communities”. The Pernod Ricard Code of Business Conduct, updated in FY19, now includes Human Rights and Fundamental Freedoms. The Supplier Standards has been updated in FY19 with additional commitments on this front. The Executive Vice President, Human Resources, Sustainability & Responsibility oversees the implementation of the Group’s Human Rights Policy. HR Directors and each Managing Director at local level are in charge of implementing the Pernod Ricard Global Human Rights Policy. As a decentralised organisation, Pernod Ricard gives responsibility to its affiliates for adopting, respecting and promoting the policy. Visits to affiliates by cross-functional internal audit teams include some labour evaluation. Managing Directors’ performance evaluations cover labour matters as well as societal and financial performance. Any targets are specific to each affiliate. ACTION PLANS AND NEXT STEPS In FY18, Pernod Ricard joined the UN Global Compact’s Decent Work in Global Supply Chains Action platform, an alliance of companies committed to respecting Human Rights and fundamental principles and rights at work. This involves working through their supply chains and taking collective action to address decent work.

In FY19, a study based on the UNGPs and Human Rights was conducted on the Group’s supply chain to identify gaps and improve its due diligence on Human Rights over the long term. In FY21, to embed a UNGPs approach, Pernod Ricard launched an assessment questionnaire with its HR network in line with its Human Rights policy and focusing on its own employees and internal practices. In addition, an external country level screening and mapping of potential Human Rights risks was conducted. With these two tools, the goal was to help affiliates raise awareness, identify gaps in relation to the eight commitments towards the Group’s employees in the Human Right policy and develop appropriate action plans. Overall, the findings demonstrated a number of good practices implemented. The findings also pointed to the need for increased communication and best practice sharing of our Health & Safety and Diversity & Inclusion efforts and roadmaps and better dissemination of the Group’s Human Rights policy and whistleblowing tool, Speak-Up. The top priorities identified by affiliates were Health & Safety and Discrimination, Diversity & Inclusion demonstrating alignment with the increased efforts by the Group in developing roadmaps in these areas. For more information, refer to sections 3.3.2.2 "Diversity & Inclusion" and 3.3.2.3 "Employee engagement & culture, working conditions and health & safety". In FY22, the Group intends to extend its impact assessment beyond its own operations, covering the whole value chain to identify salient Human Rights issues and prioritize action. It will also explore other areas such as capacity building.

Responsible supply chain 3.3.2.5 Due to the wide range of its procurement and supplies, Pernod Ricard relies on many suppliers across its supply chain. From farming and manufacturing through distribution and merchandising, some of the Group’s impact on society and the environment is managed by its suppliers. Pernod Ricard believes in creating strong business relationships and encourages suppliers to improve their practices and assists them in doing so.

Policies

Targets

2030 S&R Roadmap

By 2025, Pernod Ricard commits to implementing all mitigation plans with high or medium supplier risks (1) .

According to the risk mapping tool used internally. (1)

Agricultural products supply See subsection 3.3.1 “Nurturing Terroir”. Product & services supply

Pernod Ricard’s responsible procurement actions are driven by the following main policies: Responsible Procurement Policy, covering all purchases of products and services made by the entire workforce. It is available in English, French, Spanish, Portuguese, and Mandarin; Pernod Ricard Procurement Code of Ethics, embedded in the Code of Business Conduct, establishes rules for balanced and healthy relationships with suppliers as well as the basic sustainability principles. It is available in French, English and Spanish; sustainability model clauses for contracts, it is available in English, French, Spanish, Portuguese and Mandarin.

Have precise knowledge of the sustainability impacts, supply chain risks, and engage Pernod Ricard key suppliers through collaboration to reduce impact and accelerate improvements. Expand Responsible Procurement and Due Diligence process across supply chain with a focus on critical suppliers (high risk and spend).

Indirect advertising and promotional investments: all expenses related to the advertising and promotion of the Group’s brands (expenses such as media, POS (1) items and value-added packaging items (VAP), content production, events, research and analysis reports). Direct purchases: all purchases directly integrated into the composition of the final product (raw materials such as ingredients, glass, caps, etc.).

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021