PERNOD-RICARD - URD 2021-22 EN

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

Impactful programmes on regenerative agriculture and biodiversity preservation 3.3.1.4 Regenerative agriculture can be considered a “nature-based solution” designed to: mitigate climate change; protect ecosystems and biodiversity; restore the soil; and improve the livelihoods of farmers.

Policies

Objectives

Progress in FY21

Progress in FY22

Performance

2030 S&R Roadmap

100% of direct affiliates with a regenerative agriculture or biodiversity programme, linked to the Group’s priority terroirs (supply chains or landscape, usually addressing both agriculture and biodiversity). models for regenerative farming systems in the Group’s vineyards in eight wine regions. The goal is to capture more carbon in the soil and share knowledge with the wine industry. By 2025: test local

54% of direct affiliates with a programme. Four programmes launched.

On plan

73% of direct affiliates with a programme. Thirteen programmes launched ( cumulatively ).

Two regenerative viticulture pilot programmes. Coaching and training

On plan

Five regenerative viticulture pilot programmes ( cumulatively ).

sessions designed for each vineyard.

8,830 farmers

9,933 farmers

Achieved

5,000 farmers

empowered, trained or supported.

empowered, trained or supported.

empowered, trained or supported ( cumulatively ).

Action plans and next steps The key to success will be to define appropriate “transition paths” for different types of agricultural products. For example, transitioning to regenerative practices for large industrial corn farmers in the US will require different supports and milestones compared with the transition for small Indian rice farmers. The programmes aim to better understand and factor in local contexts, measure the dynamics of natural cycles, train partners in regenerative practices and design continuous improvement plans over the long term. To support this journey on priority terroirs, Pernod Ricard decided to join the French PADV ( Pour une Agriculture Du Vivant ) movement. Using its regeneration index, the Group measured the starting point of its partner farms and then put in place drivers to improve the resilience of the terroirs. In 2021, the Group became the first corporate partner of the IUCN (1) “Agriculture and Land Health initiative”, which aims to build a global movement for sustainable and regenerative agriculture and create metrics to monitor progress. Pernod Ricard was the first corporate company to join the initiative, which aims to bring together businesses, experts, academia and international organisations.

For its own vineyards, the Group has committed to run regenerative viticulture pilot programmes. Following a comprehensive diagnosis of the two French terroirs, Martell cognac and Mumm and Perrier-Jouët champagnes set up a pilot programme to explore three main areas: soil life; plant health and nutrition; and landscape management. Various trials are run to test combinations of cover-crops, develop grape varieties resistant to climate constraints, or even implement specific technologies or machinery. In the south of France, where Irish Distillers source their maize, the Group has enrolled 27 farmers in the regenerative index to identify their areas of progress and transform their practices, such as no or low tillage. As part of this project, the Group is also working to develop a fair economic model to ensure long-term mutual commitments. In India, Pernod Ricard India Foundation’s flagship programme WAL (Water, Agriculture, Livelihoods) aims to foster water resilience, promote sustainable and regenerative resource management, while securing the livelihoods of disadvantaged communities such as smallholder farmers, women and young people. In Mexico, Kahlúa works with coffee-producing communities and local NGO Fondo Para La Paz to support agricultural practices like the planting and development of climate resistant varieties as well as fair compensation, with a specific focus on female empowerment.

International Union for the Conservation of Nature. (1)

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Pernod Ricard Universal Registration Document 2021-2022