PERNOD-RICARD - URD 2021-22 EN

3. Sustainability & Responsibility The main sustainability risks and opportunities

3.2

The main sustainability risks and opportunities

In line with Directive 2014/95/EU on non-financial reporting as transposed into French law (1) , Pernod Ricard publishes a “Non-Financial Statement”. This statement requires the Group to disclose its business model and information on key non-financial risks. These include risks related to the environment, employment, society, Human Rights, tax evasion (2) and corruption. For more information on Pernod Ricard’s business model, please see Section 1 “Extracts from the integrated annual report”. For more information on the Group’s key non-financial risks please see Subsections 3.2.1 and 3.2.2 below. 3.2.1 Updated in FY21, the Group’s risk mapping presents and classifies the risks based on their potential impact and probability of occurrence across the Group’s activities (3) . Some of these risks are specific to sustainability. To ensure such risks and any opportunities are properly identified and mapped, Pernod Ricard uses the following methodology: every three years, the main risks faced by Pernod Ricard are: mapped by direct affiliates and HQ functions, and 1. then consolidated at HQ level by the Group's Internal Audit 2. Department; the same Group risk mapping methodology and tool are used to identify the main sustainability risks for the “Non-Financial Statement”; Presentation of the methodology

led by the S&R Department, these sustainability risks are subject to in-depth analysis through research, competitive benchmarking and internal and external stakeholder dialogue (4) . The Group’s materiality matrix was last updated in 2020. Other key HQ experts including operations, legal, HR, public affairs and finance were also involved in confirming the top eight risks and opportunities; the identified sustainability risks and opportunities were then cross-referenced with the 2021 Group Risk Mapping to confirm them and ensure consistency with the Group’s major risks in Section 4; the resulting eight non-financial risks and opportunities were subsequently presented to and signed off by the S&R Senior Steering Committee and the Board of Directors’ S&R Committee. 3.2.2 As any company, Pernod Ricard may be exposed to external or internal risks whilst also potentially benefitting from opportunities. It is thus essential to identify such potential risks and opportunities and ensure the roll-out of adequate action and/or mitigation plans. The definitions of the eight main risks and opportunities can be found in the table below. Targets, policies, due diligence procedures and key performance indicators are presented in detail in sections 3.3 “The four pillars of the Good Times from a Good Place roadmap” and 3.4 “Ethics and compliance”. In the interest of transparency, other indicators have been presented alongside the policies applied, depending on the issues addressed. Given the nature of Pernod Ricard’s activities, the Group does not consider “tax evasion (5) ” to be a major non-financial risk. It was therefore not felt necessary to explore it in this “Non-Financial Statement”. Nevertheless, “tax evasion” is discussed in Subsection 3.4.1.5 “Tax policy”. Key risks and opportunities

Article R. 225-105 of the French Commercial Code. (1) Pursuant to Act no. 2018-898 on combatting fraud. (2)

The Group’s major risks and the process for identifying them are discussed in Section 4. (3) See Subsection 3.1.1.2 “Addressing all stakeholder expectations, from grain to glass”. (4) Referred to in article L. 225-102-1 of French Commercial Code. (5)

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Pernod Ricard Universal Registration Document 2021-2022