PERNOD-RICARD - URD 2020-21

____ 3. SUSTAINABILITY & RESPONSIBILITY METHODOLOGY NOTE AND THIRD-PARTY VERIFICATION

3.6

Methodology note and third-party verification

Methodology note relating to non-financial reporting Period & scope of reporting 3.6.1.1 Social, environmental and societal data is reported annually and relates to the period from 1 July 2020 to 30 June 2021. Unless otherwise stated, this data relates to activities under the Group’s operational control. Scope of social reporting The social analyses in this report are based on all Group entities that have reported data on their employees for the relevant period. When the Group acquires a newly controlled entity and only when Pernod Ricard has the complete ownership of the entity, its corporate HR data is included in full in the figures. At the end of each financial year, the list of entities in the Group’s social reporting is compared to the financial reporting list to ensure its completeness. In FY21, reporting covered 133 entities with employees during the year. The scope of consolidation and level of detail for corporate data have changed since FY19. Social data is no longer reported by affiliate but by legal entity. This explains the increase in the number of entities covered since then. This year, the following updates have been made: France: Pernod SAS & Ricard SAS merged into the entity Pernod Ricard France; Asia: Creation of Pernod Ricard Vietnam Spirits & Wines Company Limited, Creation of Pernod Ricard Asia Duty Free Ltd – Travel Retail Asia, Creation of NewWorld Liquor, Dissolution of EURO TRADE LTD; LATAM: Creation of D&CO Platform Services, SA de CV; EMEA: Dissolution of CG Hibbert. The Asia-Pacific Region includes the Asia distribution network and the Group’s Wines business. This also includes Bodegas Tarsus and the Pernod Ricard Winemakers Spain affiliate, based in Spain, and the Pernod Ricard Winemakers Kenwood and Pernod Ricard Winemakers Mumm Napa affiliates, based in the United States. A distinction is made between the Brand Companies and the Market Companies for Australia and New Zealand resulting in two entities for each country. Pernod Ricard’s African activities are managed by Pernod Ricard’s Europe, Middle East, Africa and Latin America Region and the related data are therefore included in the data for this Region. The social reporting indicators are selected to provide the Group with a reliable and accurate picture of its global footprint. The data collected enables Pernod Ricard to be increasingly socially responsible in respect of its employees worldwide. 3.6.1

Scope of societal reporting Indicators relating to responsible drinking are included in the social report. The indicators cover all Pernod Ricard affiliates (Brand Companies and Market Companies) that are required to include their societal information in the social report, with the exception of certain entities. This is because the roll-out of the S&R strategy and the associated action plans are managed by a sole affiliate when several affiliates are in the same country. These entities do not have to send information to the Group’s reporting system. Scope of environmental reporting Pernod Ricard’s environmental reporting relates to production sites under the Group’s operational control on 30 June in the financial year in question and that were operational throughout the year. It does not cover administrative sites (head offices or sales offices) or logistics warehouses when these are located outside industrial sites (this only relates to a few isolated warehouses). This is because their environmental impact is not significant compared to those located within industrial sites. It also covers the agricultural supply chain. FY21 reporting covers 89 industrial sites. This figure is lower than in FY20 following the disposal or closure of two production sites (Paisley in United-Kingdom and Tamaki in New Zealand). The industrial scope taken into account for this financial year therefore covers a production volume of 1,035 million litres (finished product either bottled or in bulk), compared with 958 million in FY20, and a volume of distilled alcohol of 244 million litres in FY21 compared to 232 million litres in FY20. Clarification regarding indicators 3.6.1.2 Social indicators Average headcount is calculated in terms of full-time equivalents, without taking into account short-term employee absences. Long-term absences involving contract suspensions are taken into account in the calculation of the FTE. Since FY19, employees are included in the headcount of the legal entity with which they have an employment contract. Expatriates and seconded employees are included in the headcount of their host affiliates. Pernod Ricard China employees are accounted for as staff on permanent contracts. Chinese employment contracts actually comprise a statutory duration and are only converted into permanent contracts after a number of years. However, given the specific characteristics of employment legislation in China, Pernod Ricard considers its employees to be permanent staff. Due to the particular characteristics of local labour laws, as of last year the same rule applies to Pernod Ricard Minsk employees, as the concept of fixed-term contract does not exist in Belarus. Work-study contracts (apprenticeship contracts and training contracts) are not counted as fixed-term contracts, and this also applies to work placement students, temporary workers and VIE programme volunteers. Maternity/paternity/parental leaves are included in the absenteeism rate.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021