PERNOD-RICARD - URD 2021-22 EN

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

Otherwise, learnings from the terroir risk mapping point to crop sensitivity to the effects of climate change, including high sensitivity to drought, as well as its impact on ecosystems (biodiversity, soil and water) and on communities. Given the importance of this issue, the definition of climate strategies (carbon reduction and sequestration) for terroirs is a high priority.

Very closely linked to climate change, the subject of deforestation is also assessed within the terroirs. This is a global issue often induced by the agricultural expansion that might occur within the Group's terroirs. Pernod Ricard is not involved in the sectors that contribute the most to deforestation, however analysis is underway to more accurately identify sensitive areas. This will allow the implementation of plans to combat deforestation jointly with suppliers.

An agile and ambitious journey to regenerate terroirs 3.3.1.3 The Group has committed to implementing resilient agricultural practices by building strong and fair relationships with its suppliers.

Policies

Objectives

Progress in FY21

Progress in FY22

Performance

2030 S&R Roadmap

100% of key raw

28% of key raw materials produced or sourced in line with selected sustainability standards.

31% of key raw materials produced or sourced in line with selected sustainability standards.

On plan

materials produced or sourced (1) in line with selected sustainability standards. Reduce carbon footprint of agricultural raw materials to contribute to the Group’s overall Scope 3 target (50% intensity reduction) (2) .

3.

Harmonised GHG calculation

Harmonised GHG calculation

In progress

methodology developed for cereals.

methodology developed for cereals, vineyards and some distilled products broken rice and Indian Grain Neutral Spirit to better approach the baseline.

Specific study for

Calculation based on annual purchases. (1) See Subsection 3.3.3.2 “Climate change: reduction and adaptation”. (2)

Risk mitigation projects For terroirs which have demonstrated a high-level of risk, Pernod Ricard develops actions to mitigate these risks. This can be achieved through implementing certifications, engaging in specific local programs or, if needed, rethinking the sourcing strategy. Focus on water use in the vineyards Pernod Ricard sources grapes from 17 wine-growing countries, seven of which have vineyards directly operated by the Group. As perennial crops, vineyards are particularly sensitive to the effects of climate change and in particular droughts, fires or even frost. The trend towards the increasing frequency and severity of such events has been confirmed over the past three years in the Group’s vineyards. Despite the use of precision farming tools like drip irrigation systems, a significant increase in water consumption has been observed during the last years. It amounted to 11.5 million m 3 this year. Improving the resilience of vines to water scarcity will be at the heart of pilot programmes on regenerative viticulture.

Action plans and next steps Certification

Pernod Ricard aims to certify all its key raw materials to recognised sustainability standards. The Group has developed a benchmarking tool to help select the best standards, in line with the Sustainable Agriculture Key Principles. The Group also allows affiliates to develop their own standards with their local partners. All must then be verified by third parties. The standards are chosen to cover most of the high and medium risks identified through the terroir risk mapping. For example, given the risk profiles of the various sugar cane terroirs, the Bonsucro certification has been identified as the most suitable. It will be rolled out to all suppliers. This approach was designed to be tailored to each terroir by factoring in local cultures, work habits as well as the potential for transforming practices.

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Pernod Ricard Universal Registration Document 2021-2022