PERNOD-RICARD - URD 2020-21

____ 3. SUSTAINABILITY & RESPONSIBILITY ETHICS & COMPLIANCE

Suppliers and subcontractors

Mitigation actions and evaluation procedures Responsible Procurement Policy covering all purchases of products/services. Procurement Code of Ethics (embedded in Code of Business Conduct). Sustainability model clauses for contracts. Sustainable Agriculture Key Principles. Proactive supplier analysis through the Blue Source process and Partner-Up: supplier Standards to be signed by all suppliers on Partner Up platform; business relations to be suspended for direct suppliers (Wet/Dry Goods) and main indirect suppliers (POS/VAPs) who do not sign; risk mapping tool to identify suppliers (Wet and Dry Goods, POS/VAPs) and subcontractors that should be assessed first; sustainability assessment using EcoVadis for risky to identify areas of improvement and action plans; labour and ethical Audits following the SMETA standards, in line with AIM Progress; in FY21, launch of Responsible Procurement e-learning. Focus on agricultural supply chain: in FY20, benchmarking tool to assess each standard against the Group’s Sustainable Agriculture key Principles; in FY21, terroir mapping analysis to assess environmental and social risk.

Theme

Risk family

Key Performance Indicators

Subsections of Chapter 3

Health and safety

Health and safety at work

Number of suppliers: 1,719 having signed the Supplier Standards. 1,900 analysed through the Risk Mapping tool. 220 identified as risky and covered by an EcoVadis assessment. 108 identified as risky with production sites covered by an audit. Focus on agricultural supply chain: 86% of agricultural raw material spend covered by mapping, only focused on priority terroirs. full risk mapping analysis for 55 priority terroirs on which 41 were scored under a high or medium level of risk. 28% of key raw materials produced or sourced according to selected sustainability standards. 8,830 farmers empowered, trained or supported.

3.3.2 Valuing People 3.3.2.5 Responsible Supply Chain 3.3.2.4 Human Rights

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021