PERNOD-RICARD - URD 2020-21

____ 3. SUSTAINABILITY & RESPONSIBILITY PERNOD RICARD BRINGS GOOD TIMES FROM A GOOD PLACE

3.1.1.3 Pernod Ricard partnered with BSR, a global non-profit that works with its network of over 250 member companies to build a just and sustainable world, to develop three post-Covid-19 scenarios for 2030 which explored climate-related risks and opportunities, as well as other key uncertainties relevant to Pernod Ricard’s business. The scenario analysis process involved the following steps: understanding context: BSR interviewed internal stakeholders to identify key trends that are shaping Pernod Ricard’s future operating context and conducted complementary research on those most relevant to the business ( e.g. agricultural supply chains and waste); scenario development: Pernod Ricard leveraged a set of BSR prospectives on three post-Covid 2030 scenarios, tailored to industry-specific trends and including specific climate-related parameters to each scenario; strategic implications: A workshop was conducted with internal Pernod Ricard stakeholders to identify the potential risks and opportunities for each scenario and identify ideas to enhance Pernod Ricard’s resilience and refine its strategy;

The relevance of the S&R strategy following scenario analysis

strategic response: As a result of this process, the Group identified climate-related and social risk and opportunities that confirmed the Group S&R strategy and emphasised focus on: supply chain resilience, especially for agriculture raw materials, and building long-term relationships with suppliers, advancing circularity, and contingency planning for supply chain disruptions, local relevance of S&R strategy facing a fragmented world in regards to regulations and geopolitical requirements ( e.g. personal data protection, packaging), strengthening alcohol abuse prevention, especially in a context of isolation, virtuality, and other disruptions. Alcohol can be part of a balanced lifestyle and Pernod Ricard is strongly committed to promoting responsible consumption with its employees and consumers. These scenario insights have been reviewed by Pernod Ricard’s S&R Strategic Committee and S&R Committee at Board level and will be incorporated into Pernod Ricard’s strategy and risk management. The overall analysis found that the S&R strategy would remain relevant and robust across scenarios, though some themes may need to be emphasised or shifted.

A robust governance structure 3.1.2 The Sustainability & Responsibility strategy is implemented throughout the Group with the following Governance structure:

• • • •

Monitors progress of the S&R strategy, challenges ambition and reports to the wider Board 2-3 meetings per year with the S&R Committee 1 report per year to the full Board Raise awareness on long-term sustainability trends

BOARD OF DIRECTORS S&R Committee

• •

Ultimately accountable for the company’s performance against the S&R strategic goals S&R strategy discussions/updates in at least 2 COMEX meetings per year

COMEX

• •

Oversees the advancement of strategy implementation, ensures proper resourcing and raises any challenges to the COMEX 9 members meeting 4 times per year: CEO, Managing Director GBD, EVP Human Resources & Sustainability, EVP Finance, IT and Operations, Chief Sustainability Officer, VP Global Government Affairs & Alcohol in Society, VP Financial Communications and Investor Relations, Group Operations Director, Global Marketing & Commercial Director, Group Communications Director

S&R SENIOR STEERING COMMITTEE

HQ FUNCTIONS TOP MANAGEMENT

• • Empowers HQ functions to become a centre of expertise Ensures S&R strategy is embedded into processes and practices S&R HQ team to review all Brand Company and region action plans

S&R

•

Drive the coordinated implementation of the S&R Strategy, report progress to the S&R team and support the S&R Steering Committee

Responsible Hosting

Nurturing Terroir

Circular Making

Valuing People

PUBLIC AFFAIRS & ALCOHOL IN SOCIETY

GLOBAL BUSINESS DEVELOPMENT

HUMAN RESOURCES

OPERATIONS

OPERATIONS

OPERATIONS

• •

Established where necessary to 1. coordinate the implementation of the S&R strategy in specific areas, and 2. support the Senior Steering Committee with specific issues and targets Made up of experts from Market Companies, Brand Companies and lead HQ functions

ISSUE

TASKFORCES*

• • • •

CODI member responsible for the S&R strategy design, implementation and progress monitoring Senior Steering Committee relevant to their business activity Meeting at least 2 times/year to report to HQ Senior S&R Steering Committee (through the S&R HQ team) Affiliates’ action plan reviewed by the regional manager and to be signed off by the affiliate CODI/MD

REGIONS

& BRAND

COMPANIES

A network of S&R Leaders to coordinate the implementation of the affiliate S&R action plan, signed off by local CODI/MD.

AFFILIATES

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021