PERNOD-RICARD - URD 2020-21

____ 3. SUSTAINABILITY & RESPONSIBILITY ETHICS & COMPLIANCE

3.4

Ethics & compliance

3.4.1

The Group’s ethical practices

3.4.1.1

Quality, food safety and product

The Group’s absolute priority is to ensure its products comply with the regulations applicable to each of its various markets, and to guarantee food safety for consumers. A safety watch is conducted and circulated to all affiliates every two months in order to anticipate and inform on any changes regarding applicable regulations and food safety risks. A chemical analysis plan for the Group's main products is conducted every year. In FY21, this involved 60 finished products and a total of over 2,000 analyses were carried out. In addition, a Group Intranet site called “Complaint Management System” is used to record and track quality complaints from consumers in real time. The affiliate in question is immediately informed so that corrective action can be taken. In the case of a serious product safety concern issue, the system also immediately informs Headquarters, allowing for rapid response. Each affiliate has a crisis management procedure. This is particularly for product health risk involving, if necessary, a product recall. These procedures are subject to regular testing, training for people involved and updates. Quality indicators including the complaints rate are presented to the Senior Management. In addition, the Group is committed to ensuring complete GMO traceability of its products. This allows it to assure consumers strict compliance with the labelling regulations for products containing GMOs. Accordingly, all affiliates conduct a risk assessment to identify potential sources of raw materials, taking the necessary measures to ensure control of these sources. Although the distillation stage eliminates the risk that GMO material may be present in distilled products, supply chains for products that are guaranteed GMO-free have been established for certain corn-based alcohols in the United States and Europe.

compliance Pernod Ricard aims to provide its customers with products of the highest quality, and places particular importance on consumer health and safety. This has resulted in a significant commitment effort in terms of the prevention of risks associated with alcohol abuse. It also led to a strict policy in terms of food safety during the process of product design, sourcing and manufacturing. The control of consumer product safety is based on the implementation of the hazard analysis critical control point (HACCP) method that aims to identify all potential risk points in the manufacturing process. Appropriate preventive measures are then put in place to control them. Brand Companies producing the Group’s strategic brands are ISO 9001 certified. This represents 99.7% of the volume produced. In addition, and despite Wines & Spirits being less exposed to food safety risks than other food industry segments, Pernod Ricard also took the decision to have its facilities certified in accordance with ISO 22000 (Food safety management systems). Quality internal standards are established by Pernod Ricard for its industrial activities including various specific guidelines. The aim is to control risks such as the accidental contamination of a product or the presence of a foreign body in a bottle. These standards are audited as part of an internal cross-audit process. In FY21, this process was impacted by the pandemic but some cross audits were able to be carried out remotely focusing on key area such as foreign bodies, complaint management and traceability. At end of FY21, it has been possible to re-perform cross audit on site regarding local sanitary context.

FY21

FY20

% of sites ISO 22000 certified by June of the fiscal year

79%

78%

% ISO 22000 certified in volume produced covering all the Group’s strategic brands

99.8%

99.7%

% Brand Companies that are producing Group’s strategic brands are certified ISO 9001

100%

100%

Number of complaints received through the “Complaint Management System” during the fiscal year

3,300

4,100

3.4.1.2 Objectives

Personal data protection

The regulatory framework for personal data protection that applies to Pernod Ricard is complex and still evolving, since General Data Protection Regulation (GDPR) came into force three years ago, many countries and regions have adopted personal data protection laws and regulations, and non-compliance with these rules may expose the Group to sanctions.

Personal data protection is a pillar in the digital transformation of the Group. It is a business opportunity for Pernod Ricard to ensure the accuracy and relevance of its personal data, gain a better understanding of consumers, develop consumer trust, secure brand image, and continue to promote its culture of conviviality. It is also an opportunity to rethink and optimise existing processes by adopting best practices regarding personal data retention, management of rights, etc.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021