PERNOD-RICARD - URD 2021-22 EN

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

Preserve water resources 3.3.3.3. Water is an essential component of the products manufactured by Pernod Ricard. From irrigating crops to processing raw materials, distilling, blending eaux-de-vie and formulating products, water is involved at every stage of a product’s life cycle. The Group thus faces several challenges. It must: reduce water consumption, particularly in areas with shortages; preserve water quality by monitoring pollutants released by production sites; fully comply with evolving environmental regulations; and support replenishment in water-stressed basins. Pernod Ricard has been a member of the UN CEO Water Mandate since September 2010, reaffirming its commitment to protecting water resources.

Other emissions indirectly contributing to climate change Emissions from refrigerants: a programme to eliminate the most environmentally harmful refrigerant gases has been ongoing for years. This has resulted in the complete elimination of CFCs and the ongoing reduction of HCFCs. Nitrogen and sulphur oxide emissions (NO x and SO x ) contributing indirectly to the greenhouse effect and environmental acidification. These compounds are produced by fossil fuel combustion. As emissions of these atmospheric pollutants are low in the alcoholic beverages sector relative to global emissions, they do not seem to have a material impact on Pernod Ricard. The Group does not therefore feel it needs to monitor such emissions annually. The major distilleries nevertheless ensure they comply with legal limits on the discharge of such pollutants.

Policies

Objectives

Achievements and next steps

Performance

2030 S&R Strategy

A further 20% reduction in water usage from FY18 to FY30.

Since FY18, water consumption per unit produced has been reduced by 13%. 68.7% of the total water used in high-risk locations over the past year was replenished. In FY22, the Group validated the CSR criteria for the long-term incentives plan. One of the CSR criteria is linked to the implementation of the water roadmap with the goal of reducing water consumption in distilleries by 20% by 2030: to achieve a minimum reduction of 10% in the water consumed per unit of distilled alcohol by the end of FY24.

On plan

On plan

100% of water replenished in watersheds with same level of risk for production sites and dedicated copackers located in high-risk areas.

Production site water consumption and performance Origin of the water consumed by industrial sites (m 3 and %)

Breakdown of water consumption by activity

Ageing 1%

Public network 1,745,650 27%

Ground water 2,627,126 41%

Other items 1%

Vinification only 6%

Bottling 15%

River, lake or dam, other source 2,047,450 32%

Distillation 77%

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Pernod Ricard Universal Registration Document 2021-2022

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