PERNOD-RICARD - URD 2021-22 EN

Sustainability & Responsibility The main sustainability risks and opportunities

Risk/ opportunity Responsible supply chains

Sub-risk/opportunity Definition

Subsections of Section 3

Risks: supply chains in the beverage industry are diverse and fragmented due to the multiplicity and diversity of actors, from agriculture to merchandising. Pernod Ricard may be legally involved with suppliers whose practices do not comply with: Human Rights (child labour, forced/bonded labour, health and safety etc.); environmental standards (CO 2 emissions, toxic emissions etc.); or compliance and business regulations (corruption, fraud etc.). This might cause reputational damage, financial loss and legal liabilities. Risks: agricultural practices in Pernod Ricard’s supply chain may have various negative effects on: the environment (soil degradation, poor water quality and availability, CO 2 emissions, biodiversity loss and deforestation); and on the Human Rights of farmers or local communities (remuneration of farmers, health and safety, child or forced labour, land grabbing). This might also cause reputational damage and legal liabilities. Moreover, climate change may alter crop quality and areas of production leading to: increased prices; or even the inability to source in a specific area or produce a specific brand. Risks: given the international scope of its activities Pernod Ricard may be exposed to compliance issues related to anti-corruption laws and other regulations. This may be in its own operations or through its supply chain. This might cause reputational damage and lead to criminal fines. Risks: in light of the digital transformation of its activities and the increasing number of regulations, Pernod Ricard may face compliance issues related to data protection regulations (1) and fail to protect the personal data of its consumers. This might cause reputational damage, liability and financial loss.

3.3.2 Valuing People 3.3.2.4 Human Rights 3.3.2.5 Responsible Supply Chain

Responsible supply chains

Sustainable agricultural supply chain

3.3.1 Nurturing Terroir 3.3.1.1 Supporting communities to regenerate ecosystems and tackle climate change 3.3.1.3 An agile and ambitious journey to regenerate terroirs 3.3.1.4 Impactful programmes on regenerative agriculture and biodiversity preservation

3.

Compliance and business ethics

Anti-corruption & antitrust

3.4 Ethics & Compliance 3.4.1.3 Prevention of corruption and anti-competitive practices 3.4.1.4 Transparency and integrity of strategies and influencing practices

Data privacy

3.4 Ethics & Compliance 3.4.1.2 Personal data protection

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Pernod Ricard Universal Registration Document 2021-2022

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