PERNOD-RICARD - URD 2021-22 EN

3. Sustainability & Responsibility Ethics & compliance

Priority ambition to combat climate change Pernod Ricard makes it a priority to fight climate change. This is translated into the ambitious carbon reduction targets set by the Group, aligned with the Science-Based Targets Initiative. For Scopes 1 and 2 (energy used directly on Group production sites), the Group’s current target is to reduce its emissions by 54% by 2030 from its FY18 base year. This will mainly be achieved through investment in new energy-related technologies in Group distilleries, such as mechanical vapour recompression in Ireland (Irish Distillers) and Scotland (Chivas Brothers). This solution has already been implemented in Sweden by The Absolut Co. In parallel, the Group will switch globally to renewable electricity sources by 2025, following the Group commitment to RE100 (1) . Furthermore, in 2022, the Group launched its inaugural “sustainability-linked” bond issue for €750 million. This transaction is indexed to two environmental commitments: reduction of Pernod Ricard’s absolute amount of GHG emissions (Scopes 1 and 2); and reduction of its water consumption in its distilleries per unit of alcohol produced. Pernod Ricard is also focused on reducing its Scope 3 emissions, which are indirectly generated by the Group and its suppliers. Carbon reduction is now fully integrated into business discussions with glass manufacturers, in order to ensure they commit to lower carbon emissions for their supplies to the Group. Together with its regenerative agriculture engagement, this will contribute to achieving the Group’s commitment to reduce its overall carbon intensity by 50% by 2030.

Projects that contribute to the circular economy transition and biodiversity protection The KPIs of the Group’s Taxonomy-eligible turnover, Capex and Opex are expected to increase when the four remaining environmental objectives, in particular "Transition to a circular economy" and "Protection of biodiversity", are added to the Delegated Regulations (assumption based on the most recent report from the Platform on Sustainable Finance (2) ). Pernod Ricard’s commitment to protect biodiversity is reflected in its strong regenerative agriculture engagement. The ambition of the Group is to have a positive impact in all its main “terroirs”, where raw materials are sourced. In its vineyards, Pernod Ricard local affiliates are testing regenerative practices, restoring life in the soil and in the ecosystem. Projects are being initiated with farmers to develop alternative ways to grow cereals or other crops used by the Group that have a positive impact on biodiversity and farming resilience. Pernod Ricard has become the first company to join the IUCN “Agriculture and Land Health Initiative”, a new international initiative designed to accelerate the transition to sustainable agriculture as a means of combating climate change and the loss of biodiversity. Furthermore, Pernod Ricard supports various projects in the field of circular economy, including a pilot programme launched by Absolut, Beefeater and Havana Club in Hong Kong and Singapore in partnership with ecoSPIRITS (3) . This programme will allow Pernod Ricard to reduce waste and CO 2 emissions from the production and transport of glass bottles through reusable containers and bulk distribution.

RE100 is the global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable (1) electricity. More information can be found on its website. Annex to the Platform on Sustainable Finance’s report with recommendations on technical screening criteria for the four remaining environmental objectives of (2) the EU taxonomy. Available here. ecoSPIRITS is an innovative closed-loop distribution system that nearly eliminates packaging waste in the premium spirits supply chain. More information can be (3) found here.

156

Pernod Ricard Universal Registration Document 2021-2022