PERNOD-RICARD - URD 2020-21

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

Overview of the relevant categories of the Group’s carbon footprint Pernod Ricard’s overall carbon footprint shows that across the entire value chain: 37% of emissions are generated by the production of packaging (mainly glass) and POS materials; and 32% comes from the production of agricultural rawmaterials. Then come the emissions from: transportation (9%); energy used on production sites (Scope 1 and Scope 2) (9%); acquisition of fixed assets (9%); and other activities such as business travel (4%). This year, the Group’s carbon footprint has been reviewed due to methodological changes (update of dry goods emission factors and a new transportation calculation methodology). The FY18 baseline year is adjusted to reflect any significant changes such as acquisitions, divestments, updates of CO 2 e emission factors and any calculation methods. BREAKDOWN OF GROUP CARBON FOOTPRINT BY CATEGORY

TRANSPORT Pernod Ricard seeks to optimise land transport by improving vehicle loading, adjusting schedules and using more efficient vehicles. In the US, the Group is also a member of Smartways Association, which aims to reduce land transportation emissions. In Europe, the Absolut Company is a member of the Clean Shipping Project. PRODUCTION SITES On production sites, the Group is working on two fronts: i) improving energy efficiency and ii) using less and less carbon-intensive energy. To encourage such transitions, the Group has introduced an internal carbon price of €50 per ton of CO 2 equivalent for investments. Operationally, production sites must improve energy efficiency through continuous monitoring of energy consumption and in-depth energy assessments. The idea is to set energy-efficiency targets and launch consumption reduction programmes ( i.e. : renewal of processes, technologies, etc.). Several large sites have implemented ISO 50001 certified energy management systems. Moreover, the Group is working to replace fossil fuel energy sources and plans to only use renewable electricity by 2025. This year, Scope 1 (direct CO 2 equivalent emissions) increased by 4.1% in line with the 5% increase in production volumes. Scope 2 (indirect CO 2 equivalent emissions) remains stable with 29,178 tonnes compared to 29,557 tonnes last year due to an increase in renewable electricity sourcing. In terms of carbon intensity, this represents a 1.4% fall per unit between FY20 and FY21 for Scopes 1 and 2 carbon emissions. This is due to an improvement in energy efficiency of our activities after Covid-19 crisis. BREAKDOWN OF ENERGY CONSUMPTION BY ACTIVITY

Other items 126,345

285,670

CAPEX

Packaging and promotional items 1,188,299

294,999

Energy related to production sites (Scope 1 + Scope 2)

Ageing 1.2%

278,434

Vinification only 0.8%

Transport

Other items 1.4%

Vinification and bottling of wines 3.2%

1,008,659

Agricultural raw materials

Bottling 8%

PACKAGING AND POS MATERIALS Packaging and POS materials are the most carbon-intensive activity in Pernod Ricard’s value chain. To reduce their carbon impact, the Group focuses on enhancing the eco-design of its packaging (reducing its weight and increasing recycled content) and working with suppliers to reduce CO 2 emissions generated during their manufacturing process (see subsection 3.3.3.4 “Circular packaging and distribution”). AGRICULTURE PRACTICES Agriculture is the second most carbon-intensive activity in Pernod Ricard’s value chain. Pernod Ricard’s products inherently rely on agriculture. Establishing and helping improve agricultural practices is therefore a strategic priority for the Group. On its own land, the Group promotes regenerative agriculture, which can help capture carbon in the soil. Moreover, the Group works with agricultural suppliers to establish preferred standards for each crop. The goal is to identify the best way of reducing greenhouse gas emissions for each crop.

Distillation 85.4%

122

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021