PERNOD-RICARD - URD 2021-22 EN

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

Objectives and policies Pernod Ricard believes that strong self-regulation is effective in meeting the ethical expectations of consumers and stakeholders in a rapidly changing media landscape while at the same time building brand equity. Going beyond the Advertising and Marketing Communications Code of the International Chamber of Commerce, Pernod Ricard’s Code for Commercial Communications (CCC) has been in place since 2007. It ensures that the Group’s commercial communications do not encourage or condone irresponsible consumption or misuse of any kind. Pernod Ricard is also committed to industry leadership in helping raise standards for the responsible marketing of alcoholic beverages. Hence, the Group has extended its disciplines on traditional advertising to online advertising, namely Digital Guiding Principles (DGPs) for the most commonly used platforms (Facebook, Instagram, Twitter and Youtube) and websites. The internal monitoring in 2021 allowed 647 URLs to be checked. The external audit mandated in 2022 captured a larger scope of 1,032 URLs, thus allowing better compliance with IARD standards. Also, in 2020, the Group updated its CCC, strengthening all guidelines (provision mandating models be over 25 years of age and meet certain requirements). In 2021, it added guidelines regarding product placement to keep raising standards. In view of achieving a 95% compliance goal Pernod Ricard decided to take a more ambitious stance and has launched an artificial intelligence-based audit to better capture and expand the scope of the measurement for this achievement. Created in 2005, the RMP is responsible for the ethical oversight of advertising. It thus screens all advertising material due to be rolled out. It has six members and a secretary general. They are all independent of the Marketing Department. The RMP reports to the Executive Committee every month. Two Executive Responsible Marketing Panel (RMP)

Committee members act as sponsors and are also consulted on any changes to the CCC or the drafting of implementing guidelines to ensure Pernod Ricard is as fully compliant as possible with the most stringent Responsible Marketing standards. All commercial communications must be submitted to the RMP. It issues an opinion within seven days. All decisions are taken collectively by RMP members and are binding on everyone in the Group. For FY22, as the result of an internal communication campaign and more trainings, the RMP was able to assess a total of 836 requests including: 543 campaigns approved with no restrictions; 68 campaigns approved and subject to modifications; 2 campaigns rejected; 223 requests for advice. Due to the pandemic, it was not possible to systematically train face-to-face all affiliates on Responsible Marketing. Nevertheless, 347 people from various affiliates received a dedicated training. Action plans and next steps With the implementation of the Pernod Ricard CCC, the Group will continue to deliver a Convivialité brand experience and responsibility in compliance with industry commitments and advertising authority requirements. Pernod Ricard will explore how to accelerate through digital and AI to ensure even stricter control of marketing assets. Pernod Ricard believes there is a need for some industry guidelines for new modes of marketing ( e.g. gaming, metaverse). It will engage in constructive dialogue on this with all stakeholders.

Responsible sales 3.3.4.4 Pernod Ricard is committed to fighting underage drinking, notably by preventing the online sale and delivery of its products to minors.

Policies

Objectives

Progress in FY21

Progress in FY22

Performance

2030 S&R Roadmap

All Pernod Ricard’s Direct To Consumer (D2C) sites will be age-gated (2022). The Group will share global standards and trainings with

On track

100% compliance (audit via AI).

Achieved

2030 S&R Roadmap

N/A

2 webinars with all affiliates involved in e-commerce to inform them on what they have to deliver in FY23.

In progress

all its e-commerce and delivery partners (2025).

Objectives and policies The Group endeavours to combat underage drinking by ensuring that its products are not sold or delivered to intoxicated people. As part of this, the Group played a very active role in drawing up the IARD global standards for online alcohol sales and delivery (1) .

These global safeguards mark the first coalition globally to prevent the online sale and delivery of alcohol to underage individuals and to reduce the harmful consumption of alcohol among adults. The Group has shared these standards with the affiliates involved in e-commerce.

01052022Global-standards-for-online-alcohol-sales-and-delivery.pdf (iard.org) (1)

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Pernod Ricard Universal Registration Document 2021-2022