PERNOD-RICARD - URD 2021-22 EN

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

Two major Brand Companies of the Group (Irish Distillers and Chivas Brothers) are currently investing at Midleton distillery and at two single malt distilleries respectively with break-through emissions reducing technologies (MVR and bioenergy usage). They plan to deliver a carbon-neutral operation by end of 2026, having drastically reduced their emissions and by offsetting the residual balance. Compared to FY21, the carbon intensity of direct activities (measured by the Scopes 1 and 2 emissions per kL of alcohol distilled) improved by 13%. Added to the reduction obtained in the three previous years, the total reduction of the Scopes 1 and 2 intensity of production activities amounts to -18% compared to FY18 baseline. Despite this very good result, the absolute value of Scopes 1 and 2 emissions slightly increased to 301,706 t CO 2 e, a 2% increase from FY21 and 1% increase from FY18. The Group expects FY22 to be the peak of its Scopes 1 and 2 emissions in absolute value, and plans to reduce in FY23 and following years despite the growth of production volumes, thanks to the implementation of its decarbonisation roadmaps and its on-going related Capex projects. Breakdown of energy consumption by activity

exploring alternative packaging and distribution models; mandating suppliers to come up with CO 2 reduction roadmaps that align to Group’s Scope 3 Science-Based Target; implementing actions, in collaboration with suppliers and as per CO 2 reduction roadmap, to reduce CO 2 emissions from their manufacturing (see Subsection 3.3.3.4 “Circular packaging and distribution”). Transport Pernod Ricard seeks to optimise land transport by: improving vehicle loading; adjusting schedules; using multi-modal options whenever possible (train, barge, etc…); using alternative biofuels for truck transportation and more efficient vehicles. In the US, the Group is also a member of Smartways Association, which aims to reduce land transportation emissions. In Europe, the Absolut Company is a member of the Clean Shipping Project, and Martell-Mumm Perrier Jouët (MMPJ) is a partner of TransOceanic Wind Transport (TOWT). TOWT is a sailing transport company that has been implementing low-carbon sailing transport logistics solutions since 2011. Production sites On production sites, the Group is working on two fronts: improving energy efficiency; and using less and less carbon-intensive energy. To encourage such transitions, the Group introduced an internal carbon price (shadow cost of carbon). It is used to prioritise low-carbon Capex projects, by improving the economic business case compared to a pure economic analysis. In FY22 the price used was €80 per tonne of CO 2 equivalent. Operationally, production sites must improve energy efficiency through continuous monitoring of energy consumption and in-depth energy assessments. The idea is to set energy-efficiency targets and launch consumption reduction programmes (i.e.: renewal of processes, technologies, etc.). Several large sites have implemented ISO 50001 certified energy management systems. Moreover, the Group is working to reduce the use of fossil fuels and plans to only use renewable electricity by 2025 (either through direct sourcing or Renewable Electricity Certificates). This year, as part of the acceleration of its carbon reduction roadmap, the Group has consolidated reduction opportunities with projected investments for main contributing production sites to achieve Scopes 1 and 2 targets. The main actions and levers identified are the replacement of boilers with high energy efficiency units, steam recycling through mechanical vapor recompression (MVR) technology, the use of biofuels and biomass at distilleries, installation of on-site solar panels and renewable electricity procurement through power purchase agreements (PPA) and green certificates.

3.

Ageing 1.3%

Vinification only 2.9%

Other items 1.4%

Bottling 7.9%

Distillation 86.4%

Sources of energy used by the production sites ( SASB )

Other energy 4% Coal 7% Bioenergies 3%

Fuel oil 5%

Natural gas 64%

Electricity 17%

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Pernod Ricard Universal Registration Document 2021-2022

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