PERNOD RICARD - Universal Registration Document 2019-2020

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

Participation in systems for the collection of packaging in support of recycling and reuse Most packaging waste produced by the Group’s activities is generated after final consumption of products. The key issue is therefore to improve waste sorting solutions for consumers so that packaging can be recycled or reused. Pernod Ricard has set up or joined various programmes worldwide to improve recycling or reuse packaging: Europe: Group contribution of around €8 million to national schemes — designed to improve the collection and recycling of domestic packaging, including glass; United States: it joined the “Glass Recycling Coalition” to foster — efficient and economically viable recycling channels by involving all players in the chain (glass manufacturers, bottlers, recycling service providers, etc.); Brazil: joined the “Glass is Good” project, whose purpose is to — increase the glass recycling rate by involving all sectorial players.

Glass and cardboard are the main materials used. Production of packaging and promotional items account for 33% of the Group’s carbon emissions (see subsection 3.3.3.2). BREAKDOWN OF THE WEIGHT OF PACKAGING

Cardboard 6 % Gift boxes 3 % Caps, labels, covers 2 %

PET, Pouches & Bag in box 0 % Other: ceramic, crystal, etc. 1 %

Glass 88 %

Reduce waste 3.3.3.5 Limiting waste throughout the production chain and at the end of product life is an integral part of the Group’s circular economy approach. Pernod Ricard is committed to minimising waste disposal and maximising the recycling and reuse of its products. Pernod Ricard’s policy is focused on limiting food waste and eliminating landfill waste, ensuring all waste generated on industrial sites is recycled.

Policies

Targets

Achievement in FY20

2020 Environmental Roadmap

Zero waste sent to landfill at production level. —

557 tonnes of waste disposed to landfill sites this year, — 42% reduction compared to FY19.

Limiting of food waste The Group takes steps to minimise food waste throughout its value chain: upstream agriculture: reducing food waste by reusing by-products — from the production of certain foods. For example, broken rice in India or sugarcane molasses in Cuba, to produce alcohol. Moreover, in developed countries, where most agricultural raw materials used by the Group are sourced, the quality of infrastructure plus short supply routes prevent products such as cereals from perishing. As for grapes, musts or wine, they are delivered directly to the Group’s wineries by producers, limiting supply chain losses; production sites: focus on recycling waste generated through the — transformation of raw agricultural materials (spent grains, vinasse and grape pomace). The majority of waste is recycled to make animal feed, biogas, farm compost or used for other industrial purposes; consumer level: waste generated is very low since wine & spirits can — be kept for a long time, and the packaging is designed to last until the product is fully consumed.

Reducing waste and improving recycling on industrial sites The production sites mostly generate non-hazardous waste (99% of total waste vs. 1% hazardous waste): non-hazardous waste: — packaging waste (glass, paper, cardboard and plastics), — waste from the transformation of agricultural raw materials not — recovered as by-products (grape marc, stalks, sediment, etc.), waste produced by the site’s activities (sludge from treatment — plants, office waste, green waste, etc.); hazardous waste: waste used for the sites’ operation — (chemical product containers, used oils, solvents, electrical and electronic waste, neon tubes, batteries, etc.). The Group’s aims at moving towards zero landfill waste by 2020. To achieve this goal, the affiliates will pursue efforts to reduce the quantity of waste generated and identify recycling and recovery processes. For hazardous waste requiring the use of a specific treatment process to prevent environmental risks, the Group will continue to identify appropriate treatment processes locally.

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Pernod Ricard Universal Registration Document 2019-2020