PERNOD-RICARD - URD 2021-22 EN
3. Sustainability & Responsibility The four pillars of the Good Times from a Good Place roadmap
FY22
Overall performance
Unit
FY18
Energy (production sites only) Total energy consumed (SASB)
MWh LHV
1,447,315
1,600,121
Energy consumption per unit (distilled alcohol)
MWh PCI/kl PA
6.22
5.56
% renewable energy (SASB)
% %
14
18
% renewable electricity
74
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Breakdown of Group carbon footprint by category (tons CO 2 e)
Overview of the relevant categories of the Group’s carbon footprint Pernod Ricard’s overall carbon footprint shows that across the value chain: 48% come from the production of agricultural raw materials; 28% of emissions are generated by the production of packaging (mainly glass) and point of sale (POS) materials. These are followed by emissions from: transportation (8%); acquisition of fixed assets (7%); energy used on production sites (Scope 1 + Scope 2) (6%); and other activities such as business travel (3%). This year, the Group’s carbon footprint has been reviewed following methodological changes on some agricultural raw materials and on point of sale materials. For agricultural raw materials, the Group used some specific emission factors this year for components within the following categories: cereals, neutral alcohol, sugar, agave, grapes and wine products. This was done thanks to the development of an internal GHG calculation protocol and tools plus third party assessments. More specifically, an initial study was undertaken with a third party to find a more relevant Emission Factor (EF) for Indian grain alcohol, taking into account the local specificities of the raw material (broken rice) and local energy mix for distilleries. Instead of the generic factor for grain alcohol used so far, the emission factor has been revised accordingly in this reporting to more realistically reflect the local context. It remains an interim value, pending more precise data. This updated methodology has resulted in a very significant revision to the Group’s carbon emissions (+1.1 MtCO 2 e). The FY18 baseline has also been recalculated accordingly with the same emission factor for those raw materials. For point of sale materials, the methodology has been revised to better reflect the average weight of each specific material category. This updated methodology has resulted in a slight change to the Group’s carbon emissions (-51 ktCO 2 e). The FY18 baseline has been adjusted accordingly. Besides this, the FY18 baseline year has been adjusted to reflect any other significant changes such as acquisitions, and divestments. It should be noted that packaging-related carbon emissions do not take into account minor components, such as plastic sleeves, wire caps, security labels and glass decoration.
Other items 146,013 CAPEX 339,551
Energy related to production sites (Scope 1 + Scope 2) 301,706
Raw materials from agriculture 2,305,986
Transport 399,683
Packaging and promotional items 1,325,830
Agricultural practices Agriculture is the main contributor to Pernod Ricard’s value chain carbon footprint. Pernod Ricard’s products inherently rely on agriculture. Establishing and helping improve agricultural practices is therefore a strategic priority for the Group. In its own vineyards, the Group has been running regenerative viticulture pilot projects to test new practices. It is also working with suppliers of agricultural raw materials to establish the best pathways to lower carbon emissions and increase carbon sequestration within the terroirs. The commitments and actions of Pernod Ricard in the field of agriculture are described in a dedicated pillar of the Group Sustainability & Responsibility strategy Good Times from a Good Place, presented in Subsection 3.3.1 of this report. They represent major opportunities to reduce carbon emissions but also to sequestrate atmospheric carbon into the agricultural ecosystems producing the raw materials used by the Group. Packaging and point of sale materials Packaging and point of sale materials are the second source of carbon emissions in Pernod Ricard’s value chain. To reduce their carbon impact, the Group focuses on: enhancing the eco-design of its packaging; better understanding suppliers’ carbon footprint composition by collecting primary data that allows to pinpoint hotspots and develop relevant action plans; exploring new technologies and innovative low-carbon ways to produce needed packaging;
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Pernod Ricard Universal Registration Document 2021-2022
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