PERNOD-RICARD - URD 2021-22 EN

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

Resilience of the organisation In June 2019, the Science-Based Targets (SBT) initiative approved the Group’s greenhouse gas emission reduction targets. These are aligned with a well-below-2°C scenario for Scopes 1 and 2 emissions and the 2°C scenario for the target intensity of the Scope 3 emissions. In July 2021, Pernod Ricard joined the “Business Ambition for 1.5°C” to align its climate mitigation objectives with the Paris Agreement: achieve net zero global emissions by 2050 at the latest in order to limit global warming to 1.5°C. Through this commitment, the Group is revising its near-term ambitions in accordance with new SBTi recommendations defined by Net Zero Standard, FLAG guidance and GHG protocol – Land Sector and Removals. In addition, an on-going study has been kicked off to quantify the impact of a potential climate scenario, in line with the TCFD recommendations.

Risk management Climate-related risks and opportunities are identified in the course of the Group’s global risk mapping: the global risk mapping, based on local risks identified by Group affiliates and functional risks identified by the Group’s functions, is updated every three years by the internal audit team. This team reports to the Chairman and CEO. It also presents its results to the Executive Committee and the Audit Committee. The Group’s major risks are monitored annually; environmental risk mapping is based on a multi-criteria mapping tool. Affiliates input the data, which is then monitored at Group level. Affiliates identify and rate environmental risks throughout a product’s life cycle based on two criteria: severity (including potential financial impact – scored from I. 1 to 7), and probability (scored from 1 to 5). II. In terms of managing these risks, each major risk identified is placed under the responsibility of a Group Director. Environmental risks and their mitigation plans are under the responsibility of the Group Operations Director. The Group’s environmental roadmap also encompasses environmental action plans for the main environmental risks.

Help reduce climate change

Policies

Objectives

Achievements and next steps

Performance

2030 S&R Strategy

Through its new S&R strategy, the Group has set itself ambitious goals to speed up progress and extend its actions (Scopes 1, 2 and 3), as follows: by 2030: 54% reduction of Scopes 1 and 2 CO 2 emissions (in absolute value), aligned with 1,5°C, which goes beyond the initial target of 30% reduction submitted to SBTi in 2019.

On plan

A decarbonisation roadmap has been defined for the main distilleries of the Group. This is based on major Capex projects which start being implemented and will be developed further in the coming years. Since FY18, despite a +24% growth of production, the increase of Scopes 1 and 2 carbon emissions has been limited to +1% in absolute value, reflecting a significant reduction of the carbon intensity of the distillation process. The proportion of renewable electricity used is 81% for

by 2025: 100% renewable electricity used on production sites and in administrative offices (through green supply or Renewable Electricity Certificates);

On plan

production sites and administrative offices.

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Pernod Ricard Universal Registration Document 2021-2022