PERNOD-RICARD - URD 2021-22 EN

Sustainability & Responsibility Methodology note and third-party verification

Commuting accidents are not included in accident numbers. They are thus not used to calculate frequency and severity rates. It should be noted that “daily contract” data are included as long as available; any days lost after the contract termination are not included. Doubtful cases of lost-time accidents are requested to be reported by each affiliate and are reviewed quarterly by a H&S Committee composed of HQ H&S Director and manager, Brand Co QSE managers and QSE managers (or H&S coordinators) of each site requesting that a case be reviewed. Exclusion of doubtful cases can be decided when the work-relatedness is excluded and based on the H&S reporting protocol rules. Training hours rules have been harmonised: when available, actual hours will be used; when the hours are not available/tracked ( e.g. for some e-learning) 1hr will be used by default. For the training salaries costs, where detailed data was not available, a formula was introduced: total gross salary = number of hours × (UTC + DTC)/(FTE × theoretical yearly hours per FTE). Headcount and FTE calculations consider employees leaving the Group on the last day of the fiscal year as active. The related termination events are then included in the next fiscal year to calculate departure rates & turnover. One indicator was corrected: initially, in the “Representation of Women at 30 June (Permanent Contracts)” table, Group headcount for FY21 had been reported at 6,952 and was corrected to 6,592. The definition for the “Top Management” classification was reviewed and reclarified following the FY19 publication. This classification reflects the employees from COMEX to Band C job levels. The number of bartenders and bar owners trained to the Bar World of Tomorrow (BWOT) correspond to the total consolidated number of training sessions completed, since the official launch in 2020. Societal indicators Regarding Responsible Procurement information, the global data are extracted from Partner Up tool. There are some exceptions: some suppliers from the following countries are excluded from Partner Up platform because the tool is not fully deployed in these countries: China, Brazil (for Brazil, only non-Brazilian third parties are created on Partner Up), Taiwan, South Korea, Russia, Ukraine, Belarus, Kazakhstan, and Cuba. In this case, the list of suppliers is reported manually to Pernod Ricard Headquarters via and Excel sheet report. Regarding the calculated indicators: only active suppliers are considered (active supplier: doing business with Pernod Ricard for the last two years; beyond two years and without any activity, the supplier is considered inactive): having signed the Supplier Standards: number of active 1. suppliers who have signed the Supplier Standards (using Partner Up or outside Partner Up); analysed using the Risk Mapping tool: number of active 2. suppliers who have been analysed by the Risk Mapping Tool (using Partner Up or outside Partner Up);

Scope of environmental reporting Pernod Ricard’s environmental reporting relates to production sites under the Group’s operational control on 30 June in the financial year in question and operational throughout the year. It does not cover administrative sites (head offices or sales offices) or logistics warehouses located outside industrial sites (only involves a few isolated warehouses). This is because their environmental impact is not significant compared to those within industrial sites. It also covers the agricultural supply chain. The FY22 reporting covers 87 industrial sites. This figure is lower than in FY21 following the closure of one production site & reclassification of another production sites (1) . The industrial scope for this financial year therefore covers: a production volume of 1,140 million litres (finished products either bottled or in bulk), compared with 1,035 million in FY21; and a volume of distilled alcohol of 287 million litres in FY22, compared with 244 million litres in FY21. Clarification on indicators 3.6.1.2 Social indicators Average headcount is calculated in terms of full-time equivalents, without taking account of short-term employee absences. Long-term absences involving contract suspensions are reflected in the calculation of the FTE. Since FY19, employees are included in the headcount of the legal entity with which they have an employment contract. Expatriates and seconded employees are included in the headcount of their host affiliates. Pernod Ricard China employees are accounted for as staff on permanent contracts. Chinese employment contracts have a statutory term and are only converted into permanent contracts after a number of years. However, given the specific characteristics of employment legislation in China, Pernod Ricard considers its employees to be permanent staff. Due to the particular characteristics of local labour laws, as of last year the same rule applies to Pernod Ricard Minsk employees, as the concept of fixed-term contract does not exist in Belarus. Work-study contracts (apprenticeship contracts and training contracts) are not counted as fixed-term contracts. This also applies to work placement students, temporary workers and VIE programme volunteers. The absenteeism rate is calculated based on the theoretical number of hours and working days worked per year. Maternity/paternity/parental leaves are included in the absenteeism rate. Since FY21, the calculation for lost time accident severity & frequency rates evolved to follow a more commonly used method and make the indicators easier to understand. The number of accidents and subsequent calendar days lost are now set against the annual full time equivalent for both employees & interim workers, and no longer the number of days theoretically worked during the year. Additionally, and in line with the Group H&S policy, newly acquired companies are only included in their second full fiscal year for: frequency/severity rates for workplace accidents; number with lost time; and number of fatalities.

3.

Eauze (closed) & Ligneres (reclassified) in France. (1)

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Pernod Ricard Universal Registration Document 2021-2022

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