PERNOD-RICARD - URD 2020-21

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

Responsible marketing 3.3.4.2 Objectives and policies

Action plans and next steps Learning from the Covid-19 pandemic, the Group will be rethinking the way we can optimize our responsible drinking programmes and campaigns, to better reflect today’s digital context and affiliates’ needs. With Covid-19 conditions progressively improving, Pernod Ricard expects its affiliates to resume or continue their local engagement, notably through more global tools such as those described below. Responsible Party, through the tagline “Make Good Times Unforgettable” will be continuing its activities on the field and on social media for the next year, notably launching a new bold and disruptive campaign: "Drink More (Water)". This prevention campaign will be launched on a global level and also locally in countries across the world. This campaign will be launched from mid-July 2021 and will run over a few months. Evaluation metrics will be put in place to measure not only the reach and engagement around the campaign on social media but also to measure the impact and success of the messaging. On the field, Responsible Party will continue to strengthen the relationship with ESN, whilst also seeking new partners and opportunities, such as festivals, where the programme can continue to co-create safe and responsible events and share messages of responsibility around binge drinking. Pernod Ricard has renewed its partnership with UNITAR and expects to expand Autosobriety in no less than eight new countries in the next two years. The strategic brands of the Group have taken the commitment to roll out responsible drinking campaigns over the five next years.

Pernod Ricard believes that strong self-regulation is effective in meeting the ethical expectations of consumers and stakeholders in a rapidly changing media landscape while at the same time building brand equity. Going beyond the Advertising and Marketing Communications Code of the International Chamber of Commerce, Pernod Ricard’s Code for Commercial Communications (CCC) ensures that the Group’s commercial communications in particular do not encourage or condone irresponsible consumption or misuse of any kind. Pernod Ricard is also committed to being an industry leader in helping raise the standard for responsible marketing of alcoholic beverages. A special focus is put on digital marketing. In 2014, IARD partnered with social media platforms to establish the Digital Guiding Principles. The Group immediately extended the scope of its CCC to require that all online marketing meet the same high standards as traditional marketing. In 2020, the Group updated its CCC, strengthening all guidelines (provision mandating models shall be over 25 years old and shall meet certain requirements) and adding guidelines in 2021 for product placement to keep raising standards.

Policies

Targets

Progress in FY20

Progress in FY21

2030 S&R Roadmap

95% compliance with IARD Digital Guiding Principles by 2024. 100% completion rate for the e-learning (2) for the Code for Commercial Communications.

73% based on external audit. 66%.

89% based on internal monitoring (1) . 75.3%.

The Digital Guiding Principles’ external audit run in 2020 was based on 14 affiliates, the internal monitoring run in 2021 was based on 64 affiliates. (1) In order to ensure maximum compliance with the Code, it has been translated into eight languages and e-learning is mandatory for more than 2,000 (2) employees in the following functions: marketing, public affairs, communication, legal and S&R as well as some commercial functions (trade marketing and retail excellence).

Responsible Marketing Panel (RMP) Created in 2005, the RMP is responsible for ethical oversight of advertising, in charge of screening all advertising material due to be rolled out. It counts six members and a secretary general, all independent from the Marketing Department. The RMP reports to the Executive Committee on a monthly basis. Two members of the Executive Committee act as sponsors and are also consulted on any changes to the CCC or the drafting of implementing guidelines. All commercial communications must be submitted to the RMP which issues an opinion within seven days. All decisions are taken collectively by RMP members and are binding for everyone in the Group. In case of doubt about a campaign submitted for approval, the RMP has the right to request an opinion from the local or regional advertising regulatory authorities in the relevant markets.

The Panel provides one of the following three opinions on each campaign or element of a campaign submitted: campaign approved with no restrictions; campaign approved subject to modifications; campaign rejected (in this case it must be re-submitted). Due to the pandemic it was not possible to train all affiliates on the CCC but trainings were delivered to 265 people from various affiliates, brand houses and innovation hubs. Action plans and next steps With the implementation of the Pernod Ricard CCC, the Group will continue to deliver a Convivialité brand experience and responsibility in compliance with industry commitments and advertising authority requirements. Guidelines for new types of Marketing are under preparation in order to confer the maximum compliance with the Group’s highest standards for Responsible Marketing.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021