PERNOD RICARD - Universal Registration Document 2019-2020

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

risk mapping tool for each affiliate to identify which suppliers — (Wet and Dry Goods, POS/VAPs) and subcontractors should be assessed first according to set criteria regarding the Company: production or service, size, country footprint, net sales, dependence of the supplier on the affiliate, annual expenditure, critical nature of the product, social, environmental and supply chain risks of the supplier;

sustainability assessment using the EcoVadis platform and based — on four major topics: environment, labour, ethics, and supply chain. Pernod Ricard asks its risky suppliers to be re-assessed every two years to identify areas for improvement and to review the effectiveness of their action plans; labour and ethical audits following the SMETA (Sedex Members — Ethical Trade Audit) standards , in line with the AIM Progress “Mutual Recognition Programme”.

Number of suppliers

FY19

FY20

Having signed the Supplier Standards

2,675

1,983

Analysed through the Risk Mapping tool

1,878  (1)

2,284 (1)

Identified as risky and covered by an EcoVadis assessment

521

214

Identified as risky with production sites covered by an audit

144

14

Change of follow-up methodology for 2019 to be consistent with the other Responsible supply chain KPIs: the Group now takes into account the number of suppliers that (1) have been analysed through the Risk Mapping tool and not the total number of assessments done through the Risk Mapping Tool.

Circular Making 3.3.3

As far as employee commitment is concerned, Pernod Ricard makes a number of training documents available to inform employees about the Responsible Procurement process of the Group and what actions each employee can do to mitigate risks with their suppliers. For example, Pernod Ricard offers an online learning module covering merchandising. It is designed for Marketing and Communications employees and highlights the risks related to the development and purchasing of promotional products. In addition, training is offered in various formats throughout the year, including telephone calls, workshops and seminars. The Group will take the following steps: request all suppliers, from all categories, to sign the Supplier — Standards on Partner Up; complete analysis of direct suppliers (Dry and Wet Goods) and key — indirect suppliers (POS/VAPs); explore partnership plans to engage in a multi-stakeholder — programme. Pernod Ricard is already working with Bonsucro, a global multi-stakeholder non-profit organisation to promote sustainable sugarcane production, processing and trade worldwide. The Group is also part of Aim-Progress, a forum of leading Fast Moving Consumer Goods manufacturers and common suppliers, assembled to enable and promote responsible sourcing practices and sustainable supply chains; train procurement Managers and/or functions on Responsible — Procurement processes including labour rights and Human Rights considerations; expand Responsible Procurement processes to other key indirect — categories  (1) .

The world is under huge pressure with finite resources. Pernod Ricard intends to do its part in decreasing the natural resources used and minimising waste at every step of the value chain. This will involve imagining new production ways that optimise and help preserve natural resources. The traditional single-use consumption model has now reached its limits and new circular models must emerge to protect our planet and natural resources. Circularity is one of the Group’s key priorities. To become more circular, Pernod Ricard is committed to moving its business towards a circular making

model that fosters reduction, reuse and recycling. Such a shift will allow fewer resources to be consumed, waste disposed of and ultimately reduce Pernod Ricard’s environmental impact. Environmental management 3.3.3.1 Pernod Ricard strives to implement strong environmental management systems throughout the business. They are the cornerstones of the Group’ strategy, helping it tackle long-term environmental risks, reduce its environmental impact and seize opportunities at every level. Environmental management systems look to disseminate the Group’s environmental standards throughout the business and incorporate environmental considerations into its management practices. This helps manage risks and transform the business into a more circular model.

Policies

Targets

Achievements

2020 Environmental Roadmap

100% of Group employees at administrative — sites work in offices conforming to the internal Green Office guidelines. 100% of major production sites certified — ISO 14001.

72%  —

93% covering 99.9% of production —

(1) Indirect advertising and promotional investments: all expenses related to the advertising and promotion of our brands (such as expenses relating to media, POS articles and value added packaging (VAP), content production, events, research and research reports). Direct purchases: all purchases directly integrated in the composition of the final product (raw materials such as ingredients, glassware, caps, etc.).

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Pernod Ricard Universal Registration Document 2019-2020