PERNOD-RICARD - URD 2021-22 EN

3. Sustainability & Responsibility The four pillars of the Good Times from a Good Place roadmap

Risk/ opportunity

Sub-risk/opportunity Definition

Subsections of Section 3

Risks: Pernod Ricard’s reputation may be impacted by consumers’ misuse of alcohol. Its activities may also be impacted by ongoing anti-alcohol sentiment or excessive and/or punitive regulations (3) . This may lead to lower revenues and profits without effectively reducing the harmful use of alcohol. Opportunities: Pernod Ricard’s Premiumisation ambition is about drinking less but better. This supports its responsible drinking goal. The Group’s digital marketing drive enables better targeted advertising. This allows even better self-regulation and prevents the inadvertent exposure of minors or non-drinkers.

3.3.4 Responsible Hosting 3.3.4.1 Responsible drinking initiatives 3.3.4.2 Brand campaigns 3.3.4.3 Responsible marketing 3.3.4.4 Responsible sales 3.3.4.6 Consumer information 3.4 Ethics & Compliance 3.4.1.4 Transparency and integrity of strategies and influencing practices

Alcohol in Society The harmful use of alcohol by consumers

Excessive and/or punitive alcohol regulations implemented by Government to tackle harmful alcohol use

General Data Protection Regulation, California Consumer Privacy Act, etc. (1) Burns, physical trauma, falls, toxic inhalation, etc. (2) Restrictions on sales and marketing, availability of its products, increased taxes and duties. (3)

3.3

The four pillars of the Good Times from a Good Place roadmap

3.3.1.1

Supporting communities to regenerate ecosystems and tackle climate change

3.3.1

Nurturing Terroir

All Pernod Ricard products take their character from the land where they were grown. The Group is committed to nurturing every terroir and its biodiversity and respond to the challenges of climate change to ensure quality ingredients now and for generations to come. The Group has been working hand in hand with its farmers, suppliers and communities to develop sustainable and regenerative agriculture practices in its terroirs, including its own vineyards, in order to:

Objectives and policies The Group’s core business is inextricably linked to well-functioning ecosystems. Any disruption to one component (soil, water, climate, landscape…) has a direct impact on natural balances. Pernod Ricard therefore pays close attention to each element to better understand the mechanisms at work and restore natural balances. The Group believes in the strength of a holistic and systemic approach to agriculture that covers the entire farming system, maximises the shared benefits and, ultimately, the overall resilience of the terroirs over the long term. The objectives include: maximising positive interactions between agricultural and wild ecosystems; paying particular attention to soil life and its ability to restore carbon cycles;

protect ecosystems, enhance biodiversity and natural capital (wild or cultivated) by preserving habitats and trophic chains; tackle climate change, by reducing its greenhouse gas emissions and exploring potential carbon sinks within its agricultural chains. This also involves adapting its crops and agricultural practices; support agricultural communities and smallholders, in order to: develop sustainable practices, improve livelihoods,

reducing dependency on agrochemicals; sustainably managing water resources; looking after those who work the land.

The Group believes that regenerative agriculture is a significant part of the solution. This holistic approach aims to enrich soil life and its natural fertility, improve water retention capacity, and protect and enhance biodiversity. Over the long run, regenerative agriculture will improve the vitality of plants, whilst maximising carbon storage in the soil, ensuring high-quality harvests and yield stabilisation.

increase access to health and education, and more broadly, empower local populations.

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Pernod Ricard Universal Registration Document 2021-2022

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