PERNOD-RICARD - URD 2021-22 EN

Sustainability & Responsibility Methodology note and third-party verification

Carbon emissions data for the FY18 baseline for POS materials were used taking FY21 figures with revised calculation methodology, as data availability and accuracy significantly improved in FY21. In FY22, POS emissions calculation methodology was revised again for data reliability purposes. Lastly, the Group is developing calculators with its suppliers and encouraging them to conduct Life Cycle Analysis in order to progressively replace their generic emission factors with specific ones, thus allowing for finer CO 2 emissions calculation. EU taxonomy indicators For the turnover, while the Group’s activity of ticketing for brand homes is within the scope of the Taxonomy Regulation in relation to the achievement of the climate objectives, the associated revenues are immaterial and are excluded from the reporting of Taxonomy-eligibility (less than 1% of the 2022 consolidated turnover). Regarding capital expenditures (Capex), an eligibility analysis has been conducted for Pernod-Ricard’s business units, covering over 75% of Pernod-Ricard’s Capex. This analysis was extrapolated to estimate the full scope. Note that Pernod Ricard warehouse Capex is deemed not eligible to be included as alignment criteria for real estate activities are not applicable to these investments. Taxonomy Regulation states that where the Opex is non-material for the business model of the company, it shall be exempted from the calculation of the numerator of Opex KPI and disclose that numerator as being equal to zero. The calculation of the Opex as defined by the Taxonomy has been based on the identification and calculation of R&D, short-term rentals and maintenance and repairs expenses, including R&D workforce costs. Opex (as defined by the regulation) are deemed immaterial as they represent less than 5% of Pernod-Ricard total Opex. The company is therefore exempt from the calculation of the numerator and its Opex KPI is nil. Data collection, consolidation 3.6.1.3 and monitoring Data collection methods To ensure the standardisation and reliability of results, non-financial indicators are formalised in reporting procedures. This includes specific definitions for each indicator, which are passed on to all Managers involved in collecting and consolidating data.

Pernod Ricard constantly seeks to improve the collection and analysis of its data. It accordingly updates its procedures and user guide annually in line with the Group’s evolving needs. Improvements are made to ensure compliance with: the requirements of the decree implementing article 225 on corporate transparency obligations on social and environmental matters; and in accordance with applicable national or international frameworks. Updates also result from contributions from affiliates when reporting data and auditor feedback. Any changes from the previous year are highlighted. For Health & Safety Lost Time accident reporting, a new tool called Intelex has been implemented for FY22 for affiliates to register their accidents. For number of accidents, number of days, frequency and severity rate, the source of the figures is Intelex. For environmental indicators, this same tool was launched to collect data from FY22. For EU Taxonomy indicators, this initial reporting exercise has been led jointly by the Finance and CSR teams at the Group and affiliate levels, mobilising Sustainability, Finance, Operations and Purchasing Departments. The main interpretations used to roll out this regulation are mentioned in the following section. The detailed reporting protocol is available on request from Pernod Ricard’s head office. Methods for consolidating and checking data Once submitted by entities, data is compiled at management entity level, then at Region or Brand level for submission to Headquarters. The data is processed and consolidated at each level. Each entity collecting and compiling data is responsible for the indicators reported and certifies the data as well as the checks done. This control is facilitated by automatic checks within the data entry tool in the consolidation documents sent to the Regions or Brands and in the consolidation tool. Amongst other things, these include consistency checks against previous years and between the indicators themselves. For social indicators, at each step the affiliates can explain any variations versus the previous financial year. For variations of 10% or more, a comment is required to facilitate understanding and tracking. Once all the data have been collected, Headquarters performs consistency checks to identify any reporting or input errors. When there are significant variations, the Group checks with the affiliates to ensure the data is valid. Finally, Headquarters consolidates these data. Regarding the EU Taxonomy, Pernod Ricard has ensured that there is no double counting in the calculation of turnover, Capex and Opex KPIs across activities as directly allocable turnover, Capex and Opex are considered.

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Pernod Ricard Universal Registration Document 2021-2022