PERNOD RICARD - Universal Registration Document 2019-2020

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

Key Performance Indicators Overall performance

Unit

FY19

FY20

FY19-FY20

Total quantity of waste  (1)

t

42,361

31,843

-25%

Quantity of waste recycled

39,569

30,218

-24%

Quantity of waste incinerated

1,838

1,068

-42%

Quantity of waste sent to landfill

953

557

-42%

% of solid waste recycled

%

93%

95%

+2%

Quantity of waste sent to landfill per litre of finished product

g/L

0.91

0.58

-42%

Quantity of hazardous waste treated externally -29% It should be noted that this figure represents the volume of waste collected but not necessarily the amount of waste generated throughout the year. This is because, (1) although small in quantity, this waste is most often stored on site for a certain time. In addition, this waste may also be generated during ad hoc cleaning operations. For these reasons, this item is not strictly speaking a performance indicator for the current year. t 482 344

This year, the total quantity of waste sent to landfill has sharply decreased from 953 to 557 tonnes, a significant reduction compared with 10,253 tonnes in FY10. This is the result of our Group campaign towards zero waste to landfill implemented across all production sites, with noticeable improvements this year at affiliates such as Chivas Brothers and PR Argentina for example. Product quality and safety 3.3.3.6 Pernod Ricard aims to provide its customers with products of the highest quality, and places particular importance on consumer health and safety. This has resulted in a significant commitment effort in terms of the prevention of risks associated with alcohol abuse. It also led to a strict policy in terms of food safety during the process of product design, sourcing and manufacturing. The control of consumer product safety is based on the implementation of the hazard analysis critical control point (HACCP) method that aims to identify all potential risk points in the manufacturing process. Appropriate preventive measures are then put in place to control them. Brand Companies producing the Group’s strategic brands are ISO 9001 certified. This represents 99.8% of the alcohol produced. In addition, and despite Wines & Spirits being less exposed to food safety risks than other food industry segments, Pernod Ricard also undertook the gradual certification of its facilities in accordance with ISO 22000 (Food safety management systems). Quality internal standards are established by Pernod Ricard for its industrial activities including various specific guidelines. The aim is to control risks such as the accidental contamination of a product or the presence of a foreign body in a bottle. These standards are audited as part of an internal cross-audit process. The Group’s absolute priority is to ensure its products comply with the regulations that apply to each of its various markets, and is safe for the consumer.

In addition, a Group Intranet site called “Complaint Management System” is used to record and track consumer complaints and any other quality issues in real time. This immediately informs the affiliate in question so that corrective action can be taken. In the case of a serious product safety concern issue, the system also immediately informs Headquarters, allowing for rapid response. Each affiliate has a crisis management procedure. This is particularly for product health risk involving, if necessary, a product recall. These procedures are subject to regular testing, training for people involved and updates. Quality indicators including the complaints rate are presented to the Senior Management. Furthermore, a Food Risk Management Committee monitors product food Safety issues. This is particularly important for emerging risks linked to scientific knowledge or new regulations. As a support for the Food Risk Management Committee, a food safety and food law watch review is circulated with all the affiliates every two months. A chemical analysis plan is conducted every year at Group level. In FY20, this involved 91 finished products with a total of over 3,400 analysis carried out. To our knowledge, the Group’s products do not contain nano-ingredients. In addition, the Group is committed to ensuring complete GMO traceability of its products. This allows it to assure consumers strict compliance with the labelling regulations for products containing GMOs. Accordingly, all affiliates conduct a risk assessment to identify potential sources of raw materials, taking the necessary measures to ensure control of these sources. Although the distillation stage eliminates the risk that GMO material may be present in distilled products, supply chains for products that are guaranteed GMO-free have been established for certain corn-based alcohols in the United States and Europe.

FY19

FY20

% of sites ISO 22000 certified by June of the fiscal year

81%

79%

% ISO 22000 certified in volume produced covering all the Group’s strategic brands

99.8%

99.8%

% Brand Companies that are producing Group’s strategic brands are certified ISO 9001

100%

100%

Number of complaints received through the “Complaint Management System” during the fiscal year

3,800

3,300

111

Pernod Ricard Universal Registration Document 2019-2020