PERNOD-RICARD - URD 2020-21

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

Environmental management 3.3.3.1 Pernod Ricard strives to implement strong environmental management systems throughout the business. They are the cornerstones of the Group’ strategy, helping it tackle long-term environmental risks, reduce its environmental impact and seize opportunities at every level. Environmental management systems aim to disseminate the Group’s environmental standards throughout the business and incorporate environmental considerations into its management practices. This helps manage risks and transform the business into a more circular model. Pernod Ricard has environmental management systems to address environmental priorities and implement tangible actions throughout the business activities. Environmental management systems are implemented based on the following principles: the Headquarters’ Sustainable Performance Division oversees and coordinates measures at Group level by setting shared goals, monitoring performance, circulating guidelines with minimum requirements and sharing best practices. Each Brand Company is required to evaluate its performance against these requirements annually. Where necessary, compliance action plans should be implemented; Pernod Ricard’s activities, both for the Brand Companies and the Market Companies, must comply with the environmental requirements outlined in the Group environmental guidelines: affiliates are accountable for complying with local legal requirements. They must also report to Headquarters any local incidents or non-compliance, affiliates are accountable for assessing their long-term risks. They must thus identify ways to reduce their own environmental impact and apply the Group’s policy locally; major production sites are required to be ISO 14001 certified. In FY21, 92.1% of production sites were ISO 14001 certified (covering 99.7% of production); Group employees and administrative sites are required to meet the requirements of the “S&R Office” guidelines regarding different topics such as green offices governance, energy, water, waste and business travel. This year, one environmental incident was reported to local authorities and two complaints received from third parties. This includes all possible potential impact of an industrial site, in particular smells and noise. The events are described below: one accidental spillage modifying the biological process of the treatment plant and resulting in COD and pH exceeded legal limits, in Spain; one noise pollution complaint in Australia and one odour pollution complaint in Scotland. A root cause analysis was conducted for all these events and corrective actions plans drawn up. As of 30 June 2021, no provisions have been funded for environmental risks. Some affiliates had to provide guarantees when applying for operating permits. These are not for specific amounts but ensure the affiliates’ solvency to deal with any pollution or other environmental accidents.

As numerous sectors, the hospitality sector has a role to play in the transition towards a more sustainable and responsible world. To guide bartenders and bar owners in this transition Pernod Ricard has created The Bar World of Tomorrow an in-person and online training course, created in partnership with the Trash Collective and the Sustainable Restaurant Association, available worldwide. The course covers all aspects of S&R – from fresh ingredient use to responsible serving of alcoholic beverages to waste management – directly aligned with the United Nations Sustainable Development Goals (SDGs). It is based on four pillars (ingredients, service, bar and staff) and the 5Rs model: Rethink, Reduce, Reuse, Recycle and Respect. Online, it is a free e-learning course available to all legal-drinking aged adults and housed on EdApp and UNITAR’s (United Nations Institute for Training and Research) EducateAll platform, available in English, French, Spanish, Portuguese, Russian, Polish, Turkish and Mandarin. In FY20 a toolkit was shared to conduct trainings sessions (in person or video conference), aimed at guiding S&R leaders, brand ambassadors and/or advocacy colleagues to train bar owners and bartenders on the key principles of The Bar World of Tomorrow. All training sessions are reported to local S&R leaders so that they can thereafter share with HQ the number of attendees. In addition, several tools were created to share with participants: Trash Collective Cocktail Recipes, a detailed checklist Bar World of Tomorrow, a responsible service cheat sheet and a “badge” of completion.

3.3.3

Circular Making

The world's finite ressources are under huge pressure. Pernod Ricard wants to do its part in decreasing the natural resources used and minimising waste at every step of the value chain. This will involve imagining new production ways that optimise and help preserve natural resources. The traditional single-use consumption model has now reached its limits and new circular models must emerge to protect our planet and natural resources. Circularity is one of the Group’s key priorities. To become more

circular, Pernod Ricard is committed to moving its business towards a circular making model that fosters reduction, reuse and recycling. Such a shift will allow fewer resources to be consumed, waste disposed of and ultimately reduce Pernod Ricard’s environmental impact.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021