PERNOD RICARD - Universal Registration Document 2019-2020

3. SUSTAINABILITY & RESPONSIBILITY The four pillars of the good times from a good place roadmap

Action plans and next steps In FY18, Pernod Ricard joined the UN Global Compact’s Decent Work in Global Supply Chains Action platform, an alliance of companies committed to respecting Human Rights and fundamental principles and rights at work. This involves working through their supply chains and taking collective action to address decent work. In FY19, a study based on the UNGPs and Human Rights was conducted on the Group’s supply chain to identify gaps and improve its due diligence on Human Rights over the long term. In FY20, to embed a UNGPs approach, Pernod Ricard decided to focus on its own employees with the assistance of a third-party. The goal is firstly to assess current operations and to raise awareness. In addition, a country level study will be conducted scanning and mapping potential Human Rights risks based on a selection of criteria key to the Group’s operations and activities. These tools will help affiliates identify gaps and appropriate action plans. The Group will also explore other areas such as capacity building and impact assessment to identify salient Human Rights issues and prioritise action.

Developed with numerous internal stakeholders, Pernod Ricard introduced its first Global Human Rights Policy in FY19 which is divided into three key sections: “in our own operations”, “in the supply chain” and “in our local communities”. The Pernod Ricard Code of Business Conduct, updated in FY19, now includes Human Rights and Fundamental Freedoms. The Supplier Standards has been updated with additional commitments on this front. The Executive Vice President, Human Resources, Sustainability & Responsibility oversees the implementation of the Group’s Human Rights Policy. HR Directors and each Managing Director at local level are in charge of implementing the Pernod Ricard Global Human Rights Policy. As a decentralised organisation, Pernod Ricard gives responsibility to its affiliates for adopting, respecting and promoting the policy. Visits to affiliates by cross-functional internal audit teams include some labour evaluation. Managing Directors’ performance evaluations cover labour matters as well as societal and financial performance. Any targets are specific to each affiliate.

Responsible supply chain 3.3.2.5 Due to the wide range of its procurement and supplies, Pernod Ricard relies on many suppliers across its supply chain. From farming and manufacturing through distribution and merchandising, some of the Group’s impact on society and the environment is managed by its suppliers. Pernod Ricard believes in creating strong business relationships and encourages suppliers to improve their practices and assists them in doing so.

Policies

Targets

2030 S&R Roadmap

By 2025, Pernod Ricard sets out to have no direct supplier of products and services — with high or medium risks  (1) .

According to the risk mapping tool used internally. (1)

Agricultural products supply See Subsection 3.3.1 “Nurturing Terroir ” Product & services supply

The Responsible Procurement process applies throughout the Group and is supported by General Management. Each affiliate selects and monitors its suppliers and subcontractors identified as risky, and is

therefore responsible for its application. ACTION PLANS AND NEXT STEPS

Have precise knowledge of the sustainability impacts, supply chain — risks, and engage Pernod Ricard key suppliers through collaboration to reduce impact and accelerate improvements. Expand Responsible Procurement and Due Diligence process across — supply chain with a focus on critical suppliers (high risk and spend) Pernod Ricard’s responsible procurement actions are driven by the following main policies: Responsible Procurement Policy , covering all purchases of — products and services made by the entire workforce. It is available in English, French, Spanish, Portuguese, and Mandarin; Pernod Ricard Procurement Code of Ethics , embedded in the — Code of Business Conduct, establishes rules for balanced and healthy relationships with suppliers as well as the basic sustainability principles. It is available in French, English and Spanish; Sustainability model clauses for contracts, it is available in French, — English, Mandarin, Spanish, and Portuguese.

Implemented throughout the Group, the Blue Source process allows affiliates to apply the Responsible Procurement strategy locally with their suppliers and subcontractors: Supplier Standards : to be signed by all suppliers on platform Partner — Up with the aim of increasing awareness around Human Rights and labour law, health & safety, environmental impact, responsible drinking, integrity and fair business practices. This document has been updated in 2019 and includes commitments such as “Respect Land and water rights of communities”, “Environmental regulation”, “Animal welfare” and “Tax evasion”. Moreover, the Group took this opportunity to raise awareness among its suppliers and invite them to do the same. Both direct suppliers (Wet and Dry Goods) and the main indirect suppliers (POS/VAPs) who do not sign the updated version will see their business relations with Pernod Ricard suspended;

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