PERNOD-RICARD - URD 2021-22 EN

Sustainability & Responsibility The main sustainability risks and opportunities

Risk/ opportunity

Sub-risk/opportunity Definition

Subsections of Section 3

CO 2 emissions GHG emissions

Risks: due to the industrial nature of its activities and fast-changing environmental regulations, Pernod Ricard may fail to be fully compliant with new regulations and respond to stakeholder expectations. This may cause reputational damage. Moreover, distilleries emit CO 2 through the energy they use. Pernod Ricard may be impacted by energy supply and price volatility. In addition, Pernod Ricard most water-intensive activities may impact water availability, causing operational disruption and financial losses. This is especially true in water-stressed areas. Opportunities: by reducing energy consumption and associated CO 2 emissions and by building an offsetting and insetting strategy for its residual carbon emissions, Pernod Ricard can reduce its operating costs and anticipate carbon regulations in a volatile market. By implementing a virtuous circular mindset, Pernod Ricard could minimise waste at each step of its value chain and help preserve natural resources. Moreover, through good waste management, Pernod Ricard could transform waste into potential new raw material. Risks: packaging and point of sale material are some of the Group’s most carbon-intensive activities. They generate large quantities of post-consumer waste. Inadequate sustainable packaging policies or innovation might limit Pernod Ricard’s ability to attract clients and consumers. The lack of recycling infrastructure or consumer awareness in some markets might hinder the Group’s efforts to address packaging end-of-life locally. This may result in reputational damage and financial loss. Opportunities: by minimising waste at each step of its packaging life cycle and exploring the use of alternative distribution mechanisms, Pernod Ricard can preserve natural resources and reduce costs. Risks: Pernod Ricard’s product quality may be subject to an undetected deterioration (toxic contamination, alteration of taste, introduction of foreign objects into the bottles etc.). This may lead to health hazards, reputational damage, financial liabilities and product recalls.

3.3.1 Nurturing Terroir 3.3.1.1 Supporting communities to regenerate ecosystems and tackle climate change 3.3.1.4 Impactful programmes on regenerative agriculture and biodiversity preservation 3.3.3 Circular Making 3.3.3.2 Climate change: reduction and adaptation 3.3.3.3 Preserve water resources 3.3.3.5 Reduce waste

Environmental impacts of operations

Water management Waste management

3.

3.3.3 Circular Making 3.3.3.2 Climate change: reduction and adaptation 3.3.3.4 Circular packaging and distribution

Packaging lifecycle management

Packaging and point of sale material development

Quality, food safety and product compliance

3.4 Ethics & compliance 3.4.1.1 Quality, food safety and product compliance

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Pernod Ricard Universal Registration Document 2021-2022