PERNOD-RICARD - URD 2021-22 EN

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

production or service; size; country footprint; net sales; dependence of the supplier on the affiliate; annual expenditure; critical nature of the product; social, environmental and supply chain risks of the supplier. Sustainability assessment using the EcoVadis platform around four key topics: environment, labour, ethics and supply chain. Pernod Ricard asks for an annual reassessment of its high-risk suppliers and every two years for its medium-risk suppliers. This is in order to identify areas for improvement and review the effectiveness of their action plans. Social and ethical audit standards in line with the SMETA (Sedex Members Ethical Trade Audit) standards and any other similar audits covering the same criteria of analysis. For this Blue Source analysis, Pernod Ricard assumes that the risk does not stop at the amount of the expense: due to its activity and location, a supplier with a low expense may be just as much at risk as a supplier with a high expense. Accordingly, expense coverage is not calculated in this analysis.

Action plans and next steps The Blue Source process, which is implemented throughout the Group, allows affiliates to apply the Responsible Procurement strategy locally with their suppliers and subcontractors: Supplier Standards : to be signed by all suppliers on the Partner Up platform. The aim is to increase awareness around: Human Rights and labour law; health & safety; This document was updated in 2019 and includes commitments pertaining to “respecting land and water rights of communities”, “environmental regulations”, “animal welfare”, and “tax evasion”. Moreover, the Group took the opportunity to raise awareness amongst suppliers and encourage them to do likewise. Pernod Ricard will suspend dealings with any direct suppliers (Wet and Dry Goods) and key indirect suppliers (POS/VAPs) who fails to sign the updated version. Risk mapping tool for each affiliate to identify which suppliers (Wet and Dry Goods, POS/VAPs) and subcontractors should be assessed first according to set criteria regarding: environmental impact; responsible drinking; integrity and fair business practices.

Key performance indicators

FY22

Number of suppliers

FY21

Having signed the Supplier Standards (1) Analysed using the risk mapping tool Identified as risky (high or medium risk)

1,719

2,049 2,304

1,900

1,351

1,852

Identified as risky and covered by an EcoVadis assessment

220

318

Identified as at risk with production sites covered by an audit in accordance with social, environmental and ethical standards Identified as at risk following the results of the assessment/audit (EcoVadis, SMETA) but not having started the implementation of the required mitigation plan

108

70

N/A 56 Trading with a supplier can only commence once they have signed the Supplier Standards. In case of refusal, on-going orders are suspended until (1) signature. In last resort, the supplier is phased out from Pernod Ricard supplier database.

As far as employee commitment is concerned, Pernod Ricard makes a number of training documents available to employees on the Group’s Responsible Procurement process. These also indicate what actions employees can take to mitigate risks with their suppliers. For example, Pernod Ricard offers an online learning module covering all fundamental aspects of sustainability and responsibility applied to Procurement which includes interactive explanations of what "buying responsibly" means, why it is an important topic for the Group and how the

employees can practice responsible procurement locally. In addition, other trainings are offered in various formats throughout the year, including individual calls with procurement teams, specific workshops and seminars. The Group will take the following steps: ask all suppliers, across all categories, to sign up to the Supplier Standards on Partner Up (1) ; complete an analysis of direct suppliers (Dry and Wet Goods) and key indirect suppliers (POS/VAPs) (2) ;

Partner Up is the Pernod Ricard digital platform which allow employees, before signing on a new contract, to quickly and efficiently check that this third party (1) does not raise any ethical compliance red flag. The following categories are excluded from this analysis: A&P (Advertising & Promotions), IT, Business Services, Travel, Co-packing and Manufacturting (2) (incl. Logistics).

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Pernod Ricard Universal Registration Document 2021-2022