PERNOD-RICARD - URD 2020-21

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

Circular packaging and distribution 3.3.3.4 The environmental impact of the Group’s activities begins with the design of the products, packaging & POS and continues throughout their life cycle. The packaging and POS development phases represent a key lever to minimise waste and reduce the Group’s environmental footprint. For this reason, Pernod Ricard adopts eco-design principles when designing new packaging and POS and ensures

that it can be used sustainably. It also participates in local packaging collection and recycling schemes to address packaging end of life. Our vision is for Pernod Ricard to be recognised as a pioneer in sustainable packaging & POS, contributing to setting the standards within the industry.

Policies

Targets

Achievements in FY21

2030 S&R Roadmap PACKAGING

In FY21, the Group built “EcoPack” tool assessing conformity to the internal sustainable packaging guidelines. This tool will measure the percentage of recyclable packaging as well as projects demonstrating impact reduction when it will be completed by all our brands (expected FY23). PET post-consumer recycled content is estimated to 16%. 55% of cardboard is certified to standards ensuring sustainable forest management. This year, the Group did a feasibility study on a circular pilot in Asia on-trade to be launched FY22. 10 markets have been identified: India, USA, Canada, China, France, Brazil, Spain, Russia, South Africa and Poland. And a workshop was held to identify potential projects with key partners such as suppliers. 100% of promotional items made from single use plastic have been banned. 96% of promotional materials are reusable, recyclable or compostable for our key markets (scope 32 affiliates).

From 2022, 100% of new projects development will demonstrate environmental impact reduction. By 2025, 100% of packaging will be reusable, recyclable or compostable. By 2025, post-consumer recycled content for glass will reach 50% and 25% for PET and 100% of cardboard will be certified to standards ensuring sustainable forest management. By 2030, the Group will pilot five R&D projects on circular distribution of Wines & Spirits. By 2030, launch initiatives to support recycling in 10 key markets. PROMOTIONAL MATERIALS By 2021, 100% of single-use plastic point-of-sale items will be banned. By 2030, 100% of POS spend will be reusable, recyclable or compostable.

The internal sustainable packaging and POS guidelines frame our ambition for circular packaging & POS. They are based on five eco-design principles rethink, reduce, reuse, recycle, and respect each being correlated to our targets.

Eco-design Principles Definitions

Achievements examples over the past years

Rethink

Think out of the box to challenge the need for each packaging components and POS and explore new circular solutions.

All single use plastic promotional materials have been banned. Perrier Jouët developed a reused version of its electronic labels so that waste are minimised and the glass bottles can be recycled.

Reduce

Optimise the design to reduce size and weight. Limit the number of items, nothing unnecessary. Move away from single-use to keep packaging and POS refillable and reusable as long as possible. POS should be designed to be reused for the same purpose. Design packaging & POS with a recyclable mindset: using mono-materials when possible and avoiding non-separable material solutions, choosing recyclable materials only and checking if there is a recycling collection bin for this item in the main markets of use and existing recycling infrastructure. Ensure materials are responsibly sourced, with recycled content and sustainable origins.

Lillet reduced glass weight of its bottle by 18%.

Reuse

Imperial Blue and Royal Stag bottles in India are being collected from bar and restaurants before being washed, refilled and reused by consumers. Over 95% of the Group’s primary and secondary packaging (by weight) is made from material recyclable at scale (Glass, Carboard, PET).

Recycle

Respect

Absolut increased the percentage of recycled glass in its glass bottles up to 50%. Perrier Jouët developed a gift box with 100% FSC certified fibers.

Glass and cardboard are the main materials used. Production of packaging and promotional items account for 37% of the Group’s carbon emissions (see subsection 3.3.3.2). Plastics account for less than 5% of our primary packaging and we strive to limit the quantities we used on the different markets. Our commitments to the New Plastics Economy of the Ellen MacArthur Foundation’s plays a key role in minimising the plastic we use.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021