PERNOD RICARD - Universal Registration Document 2019-2020

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

Overall performance

Unit

FY10

FY19

FY20

Total volume of water used

7,095,145

6,921,074

6,451,389

Total volume of water abstracted

m 3

28,052,000

25,238,963

22,759,563

Total volume of waste water released

5,445,849

4,359,797

4,280,465

Water consumption per unit produced at production sites

m 3 / kl PA

36.3

28.1

27.8

Chemical oxygen demand (COD) released into the natural environment

t

-

929

877

Circular packaging and distribution 3.3.3.4 The environmental impact of the Group’s activities begins with the design of the products, packaging & POS and continues throughout their life cycle. The packaging and POS development phases represent a key lever to minimise waste and reduce the Group’s environmental footprint. For this reason, Pernod Ricard adopts eco-design principles when designing new packaging and POS and ensures that it can be used sustainably. It also participates in local packaging collection and recycling schemes to address packaging end of life. Our vision is for Pernod Ricard to be recognised as a pioneer in sustainable packaging & POS, contributing to setting the standards within the industry.

Policies

Targets

Achievements in FY20

2030 S&R Roadmap

By 2021, 100% of promotional items made from — single-use plastic will be banned (exception for tasting cups by 1 July 2025) . From 2022, 100% of new projects & POS development — will demonstrate environmental impact reduction. By 2025, 100% of packaging will be reusable, — recyclable, compostable or bio-sourced. By 2025, post-consumer recycled content for glass will — reach 50% and 25% for PET and 100% of cardboard will be certified to standards ensuring sustainable forest management. By 2030, 100% of POS will be reusable, recyclable, — compostable. By 2030, the Group will pilot five R&D projects on — circular distribution of Wines & Spirits. By 2030, launch initiatives to support recycling — in 10 key markets with low recycling levels.

In FY20, the Group finalised internal sustainable — packaging and sustainable POS guidelines. They are based on five eco-design principles rethink, reduce, reuse, recycle, and respect each being correlated to our targets. It has been circulated among all the affiliates. Gap analysis against these guidelines is currently being performed. The Group also established reporting to measure progress against targets. This year, the Group has engaged marketing in the — implementation of these new guidelines.

The Group is also a signatory of the New Plastics Economy and a member of the Ellen MacArthur Foundation's CE100 network. The internal sustainable packaging and POS guidelines frame our ambition for circular packaging & POS. They are based on five principles:

Eco-design Principles

Definitions

Achievements examples over the past years

Rethink

Think out of the box to challenge the need for each packaging components and POS and explore new circular solutions.

All single-use plastic straws and stirrers have been banned. Martell removed all Cordon Bleu gift boxes from the On-trade distribution network.

Reduce

Optimise the design to reduce size and weight. Limit the number of items, nothing unnecessary. Move away from single-use to keep packaging and POS refillable and reusable as long as possible. POS should be designed to be reused for the same purpose. Design packaging & POS with a recyclable mindset: using mono-materials when possible and avoiding non-separable material solutions, choosing recyclable materials only and checking if there is a recycling collection bin for this item in the main markets of use and existing recycling infrastructure. Ensure materials are responsibly sourced, with recycled content and sustainable origins.

Ballantine's reduced glass weight of its bottle by 13%.

Reuse

Imperial Blue and Royal Stag bottles in India are being collected from bar and restaurants before being washed, refilled and reused by consumers. Over 99% of the Group’s Primary packaging (by weight) is recyclable under the CITEO recyclability criteria.

Recycle

Respect

Absolut increased the percentage of recycled glass in its glass bottles up to 45%. Several brands in Brazil replaced plastic caps made from petroleum products with caps made from sugarcane ethanol.

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