PERNOD-RICARD - URD 2021-22 EN

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

In FY19, a study based on the UNGPs and Human Rights was conducted on the Group’s supply chain to identify gaps and improve its due diligence on Human Rights over the long term. In FY21, within its agricultural supply chain, the Group mapped the risks of its priority terroirs through the Terroir risk mapping tool to achieve full traceability; assess environmental and social risks on these terroirs; and implement sustainability programmes (1) . In parallel, Pernod Ricard launched an assessment questionnaire through its HR network to embed a UNGPs approach. This reflects its Human Rights policy and was focused on its own employees and internal practices. In addition, there was independent country-level screening and mapping of potential Human Rights risks. With these two tools, the goal was to: help affiliates raise awareness; identify gaps in relation to the eight commitments to the Group’s employees in the Human Right policy; and develop appropriate action plans.

Overall, the findings demonstrated the implementation of a number of best practices. The findings also pointed to the need for increased communication and best practice sharing of the Health & Safety and Diversity & Inclusion efforts and roadmaps, and better dissemination of the Group’s Human Rights policy and whistleblowing tool, Speak-Up. In FY22, the Group developed and promoted a video on Human Rights and the different Group tools and topics associated to raise employee awareness. The top priorities identified by affiliates were Health & Safety, Discrimination and Diversity & Inclusion. This demonstrated alignment with the Group’s growing efforts in developing roadmaps in these areas (2) . In FY23, the Group intends to extend its impact assessment beyond its own operations to suppliers. This involves identifying salient Human Rights issues, prioritising actions and exploring capacity building.

3.

Responsible supply chain 3.3.2.5 Due to the wide range of its procurement and supplies, Pernod Ricard relies on many suppliers across its supply chain. From farming and manufacturing through distribution and merchandising, some of the Group’s impact on society and the environment is managed by its suppliers. Pernod Ricard believes in building strong business relationships.

Policies

Objective

Performance

2030 S&R Roadmap

By 2025, Pernod Ricard aims to have no lack of mitigation plans with high or medium risks (1) .

On plan

The internal risk mapping tool is used for all suppliers providing dry goods (packaging), wet goods (raw material), point of sale material and the terroirs risk (1) mapping tool for key agricultural raw materials and priority terroirs.

Objectives & Policies Agricultural products supply See Subsection 3.3.1 “Nurturing Terroir”.

Pernod Ricard Procurement Code of Ethics, embedded in the Code of Business Conduct. It establishes rules for balanced and healthy relationships with suppliers as well as the basic sustainability principles. It is available in French, English and Spanish; model sustainability clauses for contracts. These are available in English, French, Spanish, Portuguese and Mandarin. The Responsible Procurement process applies throughout the Group and is supported by General Management. Affiliates are responsible for its application and monitor any suppliers or subcontractors identified as risky.

Product & services supply Have precise knowledge of the sustainability impacts and supply chain risks and collaborate with key suppliers to reduce the impact and accelerate improvements. Expand the Responsible Procurement and due diligence process across the supply chain with a focus on critical suppliers (high-risk and spend). Pernod Ricard’s responsible procurement actions are driven by the following main policies: Responsible Procurement Policy, covering all product and service purchases across the entire workforce. It is available in English, French, Spanish, Portuguese, and Mandarin;

For further information on the risks identified and the related action plans, see Subsection 3.3.1.2 Pernod Ricard’s agricultural footprint. (1) For further information, see Subsections 3.3.2.2 “Diversity & Inclusion” and 3.3.2.3 “Employee engagement & culture, working conditions and health & safety”. (2)

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Pernod Ricard Universal Registration Document 2021-2022

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