PERNOD-RICARD - URD 2020-21

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

Water resource preservation strategy tailored to meet local challenges Because water resources are unevenly distributed, risk levels vary depending on the location of the Group’s production sites and dedicated co-packing activities. To better understand and identify priorities, sites have been categorised as extremely high risk, high risk and low-medium risk, using an internal Water Risk Index. The Group aims to replenish the water used by its sites located in high-risk areas through local projects to preserve the water ecosystems. This led to support watershed management by improving access to safe water and sanitation, promoting sustainable water use and integrating water resources management among communities.

To reduce direct water consumption at production sites, the Group focuses its efforts on two main drivers: i) setting up systems to measure and monitor water use, and ii) identifying measures to save, reuse and recycle water. This year, the return to normal for activities after the Covid-19 impact and a continuous improvement in water efficiency measures led to a reduction of 5.3% in water use per litre of pure alcohol produced in distilleries, down by 5.3% compared to last year. This year, the Group consolidated the water reduction roadmaps from the main contributing affiliates and identified associated investment plans to reach 2030 targets. Throughout the value chain, the drip irrigation technique is used in all irrigated vineyards operated by the Group. This reduces the water used to what is strictly necessary. Moreover, given the predominance of agricultural raw materials in Pernod Ricard’s water footprint, the Group works locally with the affiliates’ suppliers to establish sustainable agriculture standards that minimise water consumption (see subsection 3.3.1.4 “Impactful programmes on regenerative agriculture and biodiversity”).

Area’s risk level

Pernod Ricard situation

Extremely high risk

Eight company-owned sites (India, Armenia, Mexico and China). 8.2% of the Group’s total water consumption. Seven company-owned sites (Armenia, Australia, Spain and France). 5.9% of the Group’s total water consumption.

High risk

Medium risk

26 company-owned sites. 8.4% of the Group’s total water consumption. 48 company-owned sites. 77.5% of the Group’s total water consumption.

Low risk

Treatment of waste water To reduce the pollutants released into the natural environment and make sure that the water discharge by production sites does not damage surrounding ecosystems or other natural resources, production sites are fitted with different technologies such as aerobic, anaerobic treatments, filtration, etc., depending on waste water quality requirements. The Group will also explore innovative projects for treating this waste water. This year, 77% of waste-water was discharged into a public sewerage system, 17% was discharged into the environment following treatment, and 6% was recycled for vineyard irrigation.

Seven Indian dedicated co-packers are located in high-risk areas and are concerned by the Group water resource preservation strategy. The water resource preservation strategy has been launched on sites located in “extremely high risk” and “high-risk” areas. PR India have already implemented water projects in their watersheds. They are actively engaged with communities through the development of water replenishment projects in order to support water conservation and also provide or improve access to safe water and sanitation. Other sites are in the process of finding a project partner and investigating water project options. The methodology used to calculate water returned to the environment for each project must be verified by a third party.

FY21

Overall performance

Unit

FY18

FY20

Total volume of water used

6,008,142

5,810,414

5,781,472

Total volume of water abstracted

m 3

25,195,334

22,118,588

22,752,799

Total volume of waste water released

4,390,900

4,281,165

4,266,566

Water consumption per unit produced at production sites

m 3 /kl PA

25.82

24.99

23.68

Chemical oxygen demand (COD) released into the natural environment

t

926

877

885

124

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021