PERNOD-RICARD - URD 2020-21

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

The Responsible Procurement process applies throughout the Group and is supported by General Management. Each affiliate selects and monitors its suppliers and subcontractors identified as risky, and is therefore responsible for its application. ACTION PLANS AND NEXT STEPS Implemented throughout the Group, the Blue Source process allows affiliates to apply the Responsible Procurement strategy locally with their suppliers and subcontractors: Supplier Standards: to be signed by all suppliers on the Partner Up platform with the aim of increasing awareness around Human Rights and labour law, health & safety, environmental impact, responsible drinking, integrity and fair business practices. This document has been updated in 2019 and includes commitments such as “Respect Land and water rights of communities”, “Environmental regulation”, “Animal welfare” and “Tax evasion”. Moreover, the Group took this opportunity to raise awareness among its suppliers and invite them to do the same. Both direct suppliers (Wet and Dry Goods) and the main indirect suppliers (POS/VAPs) who do

not sign the updated version will see their business relations with Pernod Ricard suspended; risk mapping tool for each affiliate to identify which suppliers (Wet and Dry Goods, POS/VAPs) and subcontractors should be assessed first according to set criteria regarding the Company: production or service, size, country footprint, net sales, dependence of the supplier on the affiliate, annual expenditure, critical nature of the product, social, environmental and supply chain risks of the supplier; sustainability assessment using the EcoVadis platform and based on four major topics: environment, labour, ethics, and supply chain. Pernod Ricard asks its risky suppliers to be re-assessed every year for high risk suppliers and every two years for medium-risk suppliers in order to identify areas for improvement and to review the effectiveness of their action plans; labour and ethical audits following the SMETA (Sedex Members Ethical Trade Audit) standards, in line with the AIM Progress “Mutual Recognition Programme”.

FY21

FY20

Number of suppliers

Having signed the Supplier Standards

1,983

1,719

Analysed through the Risk Mapping tool

2,284

1,900

Identified as risky and covered by an EcoVadis assessment

214

220

Identified as risky with production sites covered by an audit

14

108

As far as employee commitment is concerned, Pernod Ricard makes a number of training documents available to inform employees about the Responsible Procurement process of the Group and what actions each employee can take to mitigate risks with their suppliers. For example, Pernod Ricard offers an online learning module covering merchandising. It is designed for Marketing and Communications employees and highlights the risks related to the development and purchasing of promotional products. In addition, training is offered in various formats throughout the year, including telephone calls, workshops and seminars. The Group will take the following steps: request all suppliers, from all categories, to sign the Supplier Standards on Partner Up; complete analysis of direct suppliers (Dry and Wet Goods) and key indirect suppliers (POS/VAPs);

explore partnership plans to engage in a multi-stakeholder programme. Pernod Ricard is already working with Bonsucro, a global multi-stakeholder non-profit organisation to promote sustainable sugarcane production, processing and trade worldwide. The Group is also part of Aim-Progress, a forum of leading Fast Moving Consumer Goods manufacturers and common suppliers, assembled to enable and promote responsible sourcing practices and sustainable supply chains. As a signatory member of the United Nations Global Compact (UNGC), Pernod Ricard also participates in various webinars related to Human Rights, decent work and living wages; train Procurement Managers and/or functions on Responsible Procurement processes including labour rights and Human Rights considerations; expand Responsible Procurement processes to other key indirect categories.

The Bar World of Tomorrow 3.3.2.6

Policies

Targets

Progress in FY21

2030 S&R Roadmap

By 2030, train 10,000 bartenders on all aspects of sustainability and responsibility – from fresh ingredient use to responsible serving of alcoholic beverages to waste management.

In person: 914 at 30 June. E-learning: 668 at 30 June.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021