PERNOD-RICARD - URD 2021-22 EN

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

To reduce direct water consumption at production sites, the Group focuses its efforts on two main drivers, setting up systems to measure and monitor water use and identifying measures to save, reuse and recycle water. This year, the ongoing improvement in efficient water management led to a 5.6% reduction in water use per litre of pure alcohol produced in distilleries compared to last year . For the years to come, the Group has consolidated the water reduction roadmaps from the main contributing affiliates and identified associated investment plans to achieve the 2030 targets. Regarding the agricultural supply chain, the drip irrigation technique is used in all vineyards irrigated and operated by the Group. This reduces the water used to what is strictly necessary. Moreover, given the predominance of agricultural raw materials in Pernod Ricard’s water footprint, the Group works locally with the affiliates’ suppliers to establish sustainable agriculture standards that minimise water consumption (see Subsections 3.3.1.3 “An agile and ambitious journey to regenerate terroirs” and 3.3.1.4“Impactful programmes on regenerative agriculture and biodiversity preservation”).

Water resource preservation strategy tailored to meet local challenges ( SASB ) Because water resources are unevenly distributed, risk levels vary depending on the location of the Group’s production sites and dedicated co-packing activities. To better understand and identify priorities, sites have been categorised as extremely high-risk, high-risk and medium-low risk, using an internal Water Risk Index, calculated with the use of indicators from the Aqueduct Water Risk Atlas Tool. The Group aims to replenish the water used by its sites in high-risk areas through local projects to preserve the water ecosystems. This led to support for watershed management by: improving access to safe water and sanitation; promoting sustainable water use; and integrating water resource management among communities.

3.

Area’s risk level

Pernod Ricard situation

Extremely high-risk (SASB)

8 company-owned sites (India, Armenia, Mexico and China). 8.2% of the Group’s total water consumption. 7 company-owned sites (Armenia, Australia, Spain and France). 5.4% of the Group’s total water consumption.

High-risk (SASB)

Medium-risk

25 company-owned sites. 8.2% of the Group’s total water consumption. 47 company-owned sites. 78.2% of the Group’s total water consumption.

Low-risk

The water resource preservation strategy has been rolled out to sites in “extremely high-risk” and “high-risk” areas. PR India has already implemented water projects in such watersheds. It is actively engaged with communities through the development of water replenishment projects to support water conservation and ensure and improve access to safe water and sanitation. Eight dedicated Indian co-packers located in high-risk areas are covered by the Group’s water resource preservation strategy. This year, the affiliates in Armenia, Mexico and China implemented a water replenishment project. In Armenia, Yerevan Brandy Company developed a project intended to reduce drinking water wastage in Yerevan City. Penord Ricard Mexico has joined a collaborative project led by the Beverage Industry Environmental Roundtable (BIER) called “Charco Bendito” in the Guadalajara basin to improve water availability and eliminate unsustainable water use with reforestation and restoration actions. In China, Helan Mountain initiated a project in the Yinchuan Baohu Wetland Park to implement water efficiency and reduction measures such as the reparation of leaking pipelines and the installation of drip-irrigation systems.

Other affiliates are in the process of finding project partners and exploring water project options. The methodology used to calculate water returned to the environment for each project must be verified by a third party. Treatment of waste water Production sites are fitted with various technologies depending on waste water quality requirements (1) to reduce the pollutants released into the natural environment. They also ensure that water discharged by production sites does not damage surrounding ecosystems or other natural resources. The Group is also exploring innovative projects for treating waste water. This year: 80% of waste-water was discharged into a public sewage system; 15% was discharged into the environment following treatment; and 5% was recycled for vineyard irrigation.

Such as aerobic, anaerobic treatments, filtration, etc. (1)

133

Pernod Ricard Universal Registration Document 2021-2022