PERNOD-RICARD - URD 2021-22 EN

3. Sustainability & Responsibility Methodology note and third-party verification

identified as risky (high or medium risk): number of active 3. suppliers identified with high or medium risk (results of the Risk Mapping Tool); identified as risky and covered by an EcoVadis assessment: 4. number of active suppliers, identified as risky (high or medium) and evaluated by EcoVadis (valid evaluation, expired evaluation excluded); identified as risky with production sites covered by an audit 5. following social, environmental and ethical standards: number of active suppliers, identified as risky (high or medium) and audited following social and ethical audit standards (valid evaluation, expired evaluation excluded); identified as risky following an external assessment/audit 6. (Ecovadis, SMETA) but who did not start to implement the required mitigation plan: number of active suppliers, identified as risky, following an external assessment/audit (Ecovadis, SMETA) who require to start a mitigation plan (a plan to correct the non-conformities). For the two last indicators, the methodology has been updated. In January 2022, the Group stopped its membership of the AIM Progress initiative and decided to extend the scope of social and ethical audits to other standards such as the Sustainable Winegrowing Accreditation (SWA). Environmental indicators The Group footprint on agricultural land is assessed by the areas on which purchased agricultural raw materials are used. These equivalent areas are estimated on the basis of the agricultural yields of the various materials used by the Group (1) . For transformed products, industrial yields are used to assess the quantity of agricultural materials purchased. Site environmental performance is expressed using various ratios. These depend on the business category used by the Group to classify sites: distilleries: data broken down by volumes of pure distilled alcohol; bottling sites: data broken down by volumes of bottled finished products; wineries: data broken down by volumes made into wine; vineyards: data broken down by surface area cultivated with vines. At Group level, consolidated performance is expressed based either on: the amount of distilled alcohol for environmental impact primarily due to distillation ( e.g. , water or energy consumption), expressed in units per thousand litres of pure distilled alcohol (kl PA); the bottled volume or the volume of finished products manufactured (including products delivered in bulk) when bottling or production is the main source of impact (such as in the case of solid waste), expressed in units per thousand litres (kl); the number of hectares occupied by vineyards for agricultural properties, expressed in units per hectare (ha). For industrial sites, this distinction is sometimes complex, as some sites have several activities. As such, since the time frames involved in bottling may sometimes differ widely from those for distilling (aged spirits: whiskies, cognac, etc.), these figures may be difficult to interpret from year to year. Both calculation methods are therefore presented for some indicators.

Setting overall Group quantitative targets for the quantity of water or energy consumed per unit produced, for example, becomes complex as the consolidation of targets depends on the business mix during the year and the consolidated indicator chosen. For that reason, the performance captured by indicators should be used with care and interpreted over the long-term. Where a significant reporting error from previous periods is identified, historical data is only readjusted if the impact on Group performance is over 1%. This is to allow for a better interpretation of results and trends. The definitions for “renewable energy consumption” and “renewable electricity consumption” were reviewed following the FY19 publication to come into line with RE100 requirements. Since FY20: total renewable electricity consumption is calculated using the portion covered by green or renewable energy certificates plus renewable electricity produced and used on site; total renewable energy consumption is calculated using total renewable electricity consumption plus other renewable energy used on site (biogas, biofuel, etc.). The Water Risk Assessment is done using the Aqueduct Water Risk Atlas, a tool developed by the World Resources Institute (WRI). The Internal Water Risk Index (IWRI) is calculated based on the blended rating from three Aqueduct indicators: overall Water Risk; baseline Water Stress; baseline Water Stress – 2030 projected using a “Business as Usual” scenario. Three water risk levels are defined as a result of “Internal Water Risk Index” analysis: Sites from the top two risk levels ( i.e. , 3 or higher) are required to replenish their water consumption through water projects. Dedicated co-packers only include bottling process activities with at least 90% of production volume relating to Pernod Ricard. The water quantities replenished through projects in place are consolidated at country-level and for watersheds with the same level of risk. Concerning the Group carbon footprint calculation, both location-based and market-based energy emissions are calculated, although Scopes 1 and 2 calculations only take market-based emissions into account. The location-based method reflects the average emissions intensity of grids on which energy consumption occurs; the market-based method reflects emissions from electricity that companies have purposefully chosen, and derives emission factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims. extremely high-risk, sites with an IWRI of over 4; high-risk, sites with an IWRI between 3 and 4; medium-risk, sites with an IWRI between 2 and 3; low-risk, sites with an IWRI under 2.

Except for the agave footprint which is based on accurate land coverage. (1)

160

Pernod Ricard Universal Registration Document 2021-2022