PERNOD RICARD - Universal Registration Document 2019-2020

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

Climate change: reduction 3.3.3.2 and adaptation Alignment with TCFD recommendations

Pernod Ricard has environmental management systems to address environmental priorities and implement tangible actions throughout the business activities. Environmental management systems are implemented based on the following principles: the Headquarters’ Sustainable Performance Division oversees and — coordinates measures at Group level by setting shared goals, monitoring performance, circulating guidelines with minimum requirements and sharing best practices. Each Brand Company is required to evaluate its performance against these requirements annually. Where necessary, compliance action plans should be implemented; Pernod Ricard’s activities, both for the Brand Companies and the — Market Companies, must comply with the environmental requirements outlined in the Group environmental guidelines: affiliates are accountable for complying with local legal — requirements. They must also report to Headquarters any local incidents or non-compliance, affiliates are accountable for assessing their long-term risks. — They must thus identify ways to reduce their own environmental impact and apply the Group’s policy locally, major production sites are required to be ISO 14001 certified. In — FY20, 93.3% of production sites were ISO 14001 certified (covering 99.9% of production), Group employees and administrative sites are required to meet the — requirements of the “Green Office” guidelines regarding different topics such as green offices governance, energy, water, waste and business travel. This year, one environmental incident was reported to local authorities and nine complaints received from third parties. This includes all possible potential impact of an industrial site, in particular smells and noise. The events are described below: one accidental spillage of a chemical product in Scotland; — five noise complaints in Australia and four odour complaints in — Scotland. A root cause analysis was conducted for all these events and corrective actions plans drawn up. As of 30 June 2020, no provisions have been funded for environmental risks. Some affiliates had to provide guarantees when applying for operating permits. These are not for specific amounts but ensure the affiliates’ solvency to deal with any pollution or other environmental accident.

Climate change is one of the most urgent challenges facing this generation. Combatting it is a major focus of Pernod Ricard’s environmental policy. The Group plans to reduce the CO 2 equivalent emissions generated throughout its supply chain and adapt its business to ensure it is resilient. For greater transparency, Pernod Ricard follows the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). GOVERNANCE Pernod Ricard has a dedicated governance and organisational structure to ensure that climate change issues are fully incorporated into its strategy. That is why the Sustainability & Responsibility Senior Steering Committee (S&R Senior Steering Committee), chaired by Pernod Ricard’s Chairman and CEO, was created. Pernod Ricard also has a dedicated Sustainable Performance team at HQ, responsible for implementing its climate change strategy. Board supervision: the Board of Directors evaluates the appropriateness of Pernod Ricard’s S&R commitments. It also ensures that climate-related issues are incorporated into the Group’ strategy through two annual meetings. The Board relies on Pernod Ricard’s Operations Department to incorporate climate-related issues into the Group’s three-year strategic plans and budgets, in compliance with its strategic guidelines. The Executive Committee, which meets twice a year on S&R topics, prepares, examines and approves all decisions relating to sustainability and climate change and submits its decisions to the Board of Directors. The Committee is also tasked with reviewing climate change risks and opportunities assessed by the S&R Department and HQ experts. Role of management: the S&R Senior Steering Committee shapes Pernod Ricard’s approach to climate change, among other sustainability issues. For its part, the S&R HQ Team ensures that the strategy is effectively embedded into processes and practices. The S&R Senior Steering Committee, considered as a Top Management governance body, has nine members. They represent all the Group’s functions at the highest level: CEO, Managing Director GBD, EVP Human Resources & Sustainability & Responsibility, EVP Finance, IT and Operations, Group VP Sustainability & Responsibility, VP Global Government Affairs, Group Operations Director, Global Marketing & Commercial Director and Group Communications Director. The Committee assesses and manages climate-related risks and opportunities. It creates action plans and oversees the implementation of the strategy by the operations teams and the Global Business Development functions.

Pernod Ricard Universal Registration Document 2019-2020 102