PERNOD RICARD - Universal Registration Document 2019-2020

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

OVERVIEW OF THE GROUP’S CARBON FOOTPRINT AND ENERGY CONSUMPTION Overall performance Unit

FY10

FY19

FY20

Energy (production sites only) Total energy consumed

MWh LHV

1,465,872

1,502,451

1,438,332

Energy consumption per unit (distilled alcohol)

MWh PCI/kl PA

7.49

6.11

6.19 13.4 74.0

% renewable energy

% %

7

12.6 70.1

% renewable electricity

29

Carbon footprint Direct emissions (Scope 1)

259,896

262,378

255,417 29,557 284,974

Indirect emissions (Scope 2)

97,758

35,151

Direct and indirect emissions (Scope 1 + Scope 2)

t CO 2 e

357,654

297,529

All other indirect emissions (Scope 3)

NA NA

2,745,949 3,043,478

2,552,390 2,837,364

Group Carbon footprint (Scopes 1, 2 and 3)

Carbon emissions intensity at production site level (Scopes 1 and 2)

t CO 2 e/kl PA

1.83

1.21

1.23

OVERVIEW OF THE RELEVANT CATEGORIES OF THE GROUP’S CARBON FOOTPRINT Pernod Ricard’s overall carbon footprint shows that across the entire value chain: 33% of emissions is generated by the production of packaging — (mainly glass) and POS materials; and 31% comes from the production of agricultural raw materials. — Below this there are: emissions from transportation (12%); — energy used on production sites (Scope 1 and Scope 2) (10%); — acquisition of fixed assets (8%); and — other activities such as business travel (6%). — Compared to last year, the Group’s carbon footprint is down from 3 to 2.8 million tonnes of CO 2 equivalent emissions. This is mainly due to packaging materials reduction as well as change in calculation methodology. BREAKDOWN OF GROUP CARBON FOOTPRINT BY CATEGORY

AGRICULTURE PRACTICES Agriculture is the second most carbon-intensive activity in Pernod Ricard’s value chain. Pernod Ricard’s products inherently rely on agriculture. Establishing and helping improve agricultural practices is therefore a strategic priority for the Group. On its own land, the Group promotes regenerative agriculture, which can help capture carbon in the soil. Moreover, the Group works with agricultural suppliers to establish preferred standards for each crop. The goal is to identify the best way of reducing greenhouse gas emissions for each crop. TRANSPORT Pernod Ricard seeks to optimise land transport by improving vehicle loading, adjusting schedules and using more efficient vehicles. In the US, the Group is also a member of Smartways Association, which aims to reduce land transportation emissions. In Europe, the Absolut Company is a member of the Clean Shipping Project. PRODUCTION SITES At production sites, the Group is working on two fronts: i) improving energy efficiency and ii) increasingly using less carbon-intensive energy. To encourage such transitions, the Group has introduced an internal carbon price of €50 per ton of CO 2 equivalent for investments. Operationally, production sites must improve energy efficiency through continuous monitoring of energy consumption and in-depth energy assessments. The idea is to set energy-efficiency targets and launch consumption reduction programmes ( i.e. : renewal of processes, technologies, etc.). Several large sites have implemented ISO 50001 certified energy management systems. Moreover, the Group is working to replace heavy fuel oil and coal with cleaner energy sources such as natural gas. It plans to only use renewable electricity by 2025. This year, Scope 1 (direct CO 2 equivalent emissions) declined by 4.2% in line with the 5.5% decrease in production volumes. Scope 2 (indirect CO 2 equivalent emissions) fell sharply from 35,151 to 29,557 tonnes due to a decrease in electricity consumption by 5.8% and an increase in renewable electricity sourcing. In terms of carbon intensity, this represents a 1.4% rise per unit between FY19 and FY20 for Scopes 1 and 2 carbon emissions. This is due to a loss in energy efficiency of our bottling activities with the Covid-19 crisis.

Other items 139,112

Fixed assets 224,511

Packaging and promotional items 945,466

Energy related to production sites (Scope 1 + Scope 2) 284,974

Transport 351,184

Agricultural raw materials 892,116

PACKAGING AND POS MATERIALS Packaging and POS materials are the most carbon-intensive activity in Pernod Ricard’s value chain. To reduce their carbon impact, the Group focuses on enhancing the eco-design of packaging, reducing its weight and optimising the materials used (see subsection 3.3.3.4 “Circular packaging and distribution”).

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