PERNOD-RICARD - URD 2020-21

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

SOURCES OF ENERGY USED BY THE PRODUCTION SITES

Nitrogen and sulphur oxide emissions (NO x and SO x ) contributing indirectly to the greenhouse effect and environmental acidification. These compounds are produced by fossil fuel combustion. As emissions of these atmospheric pollutants are low in the alcoholic beverages sector compared to worldwide emissions, they seem to have no material impact on Pernod Ricard. The Group does not therefore feel it needs to monitor such emissions on an annual basis. The major distilleries nevertheless ensure that they comply with legal limits on the discharge of such pollutants. Preserve water resources 3.3.3.3 Water is an essential component of the products manufactured by Pernod Ricard. From irrigating crops to processing raw materials, distilling, blending eaux-de-vie and formulating products, water is involved in every stage of the product’s life cycle. The Group thus faces several challenges. It must i) reduce water consumption, particularly in areas with shortages, ii) preserve water quality by monitoring pollutants released by production sites, and iii) fully comply with evolving environmental regulations. Pernod Ricard has been a member of the UN CEO Water Mandate since September 2010, thereby reaffirming its commitment to protect the planet’s water resources.

Coal 9%

Other energy 4%

Fuel oil 5%

Natural gas 64%

Electricity 17%

OTHER EMISSIONS CONTRIBUTING INDIRECTLY TO CLIMATE CHANGE INCLUDE : Emissions from cooling gases, some of which are harmful to the ozone layer. Some of these gases also increase the greenhouse effect. A programme to eliminate the most environmentally harmful refrigerant gases has been ongoing for numerous years. This has resulted in the complete elimination of CFCs and a continuous reduction of HCFCs.

Policies

Objectives

Achievements and next steps

2030 S&R Strategy

Further reduction in water use by 20% from FY18 to FY30. 100% of water replenished in watersheds with same level of risk for our production sites and dedicated copackers located in high risk areas. Exploring innovative ways to reuse organic waste.

Since FY18, water consumption per unit produced has been reduced by 8.3%. In FY20, production sites have identified water reduction opportunities based on best available technologies per activity (distillation, wineries, bottling…). This will feed into defining water use excellence targets for each site. This year, 53.2% of the total water used in high-risk locations has been replenished. The Group will identify wastewater treatment opportunities and engage research on innovative waste treatment solutions with the Paul Ricard Oceanographic Institute.

Production sites water consumption and performance

ORIGIN OF THEWATER CONSUMPTION BY INDUSTRIAL SITES (%)

BREAKDOWN OF WATER CONSUMPTION BY ACTIVITY

Ageing 1%

Vinification only 2%

Public network 25%

Other items 1%

Vinification and bottling of wines 5%

38% Ground water

Bottling 12%

River, lake or dam, other source 37%

Distillation 79%

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021