PERNOD RICARD - Universal Registration Document 2019-2020

3. SUSTAINABILITY & RESPONSIBILITY Methodology note and third-party verification

Methodology note and third-party verification 3.6 Methodology note relating to non-financial reporting 3.6.1 Period & scope of reporting

Scope of environmental reporting Pernod Ricard’s environmental reporting relates to production sites and vineyards under the Group’s operational control on 30 June in the financial year in question and that were operational throughout the year. It does not cover administrative sites (head offices or sales offices) or logistics warehouses when these are located outside industrial sites (this only relates to a few isolated warehouses). This is because their environmental impact is not significant compared to those located 90 industrial sites. This figure is higher than in FY19 following the — disposal or closure of two production sites (Cubzac in France and Daurala in India), and the integration of three production sites (Weiden in Germany, Cowansville and Vineland Station in Canada). The industrial scope taken into account for this financial year therefore covers a production volume of 958 million litres (finished product either bottled or in bulk), compared with 1,045 million in FY19, and a volume of distilled alcohol of 232 million litres in FY20 compared to 246 million litres in FY19. Commentary on the results can be found in the various parts of the “Protect the planet” subsection of this document; 5,602 hectares of vineyards, in New Zealand, Australia, France, Spain, — the United States, Argentina and China. Key results related to vineyards can be found in the “Sustainable agriculture and performance of our vineyards” subsection. Clarification regarding indicators Social indicators Average headcount is calculated on a full-time equivalent basis, without taking into account long- and short-term absences. Since FY19, employees are included in the headcount of the legal entity with which they have an employment contract. Expatriates and seconded employees are included in the headcount of their host affiliates. Pernod Ricard China employees are accounted for as staff on permanent contracts. Chinese employment contracts actually comprise a statutory duration and are only converted into permanent contracts after a number of years. However, given the specific characteristics of employment legislation in China, Pernod Ricard considers its employees to be permanent staff. Due to the particular characteristics of local labour laws, as of last year the same rule applies to Pernod Ricard Minsk employees, as the concept of fixed-term contract does not exist in Belarus. Work-study contracts (apprenticeship contracts and training contracts) are not counted as fixed-term contracts, and this also applies to work placement students, temporary workers and VIE programme volunteers. Maternity/paternity/parental leaves are included in the absenteeism rate. Regarding the Covid-19 crisis, the leave days resulting from governmental restrictions have been excluded from the absenteeism reporting to keep coherence with previous absenteeism rates. However, in some countries, sick leaves have been granted to allow parents to take care of their child having no school – these leaves cannot be differentiated from real sick leaves and have been included. The absenteeism rate and workplace accident frequency and severity rates are calculated on the basis of the theoretical number of hours or days worked per year. Working days are used to calculate the absenteeism rate. Calendar days are used for the workplace accident frequency and severity rates. within industrial sites. FY20 reporting covers:

Social, environmental and societal data is reported annually and relates to the period from 1 July 2019 to 30 June 2020. Unless otherwise stated, this data relates to activities under the Group’s operational control. Scope of social reporting The social analyses in this report are based on all Group entities that have reported data on their employees for the relevant period. When the Group acquires a newly controlled entity, its corporate data is immediately included in full in the figures, regardless of the equity stake held by Pernod Ricard. At the end of each financial year, the list of entities in the Group’s social reporting is compared to the Financial Reporting list to ensure its completeness. In FY20, reporting covered 141 entities. The scope of consolidation and level of detail for corporate data have changed since FY19. Social data is no longer reported by affiliate but by legal entity. This explains the increase in the number of entities covered since then. This year, the following updates have been made: Chivas Brothers International Ltd has been created under Chivas — Brand to focus on marketing activities; Drinks & Co Store France created for the store opening in Paris, — France; New acquisitions for digital marketplaces: DrinksAndCo — Marketplace SLU & Bodeboca, SL ; Pernod Ricard Philippines, Inc . & Seagram China are now — consolidated individually under Asia; Pernod Ricard Helan Mountain is now reported under Asia HQ; — SIA Pernod Ricard Eastern Europe Operations created under — EMEA; new acquisition in South Africa, Inverroche . — The Asia-Pacific Region includes the Asia distribution network and the Group’s Wines business. This also includes Bodegas Tarsus and the Pernod Ricard Winemakers Spain affiliate, based in Spain, and the Pernod Ricard Winemakers Kenwood and Pernod Ricard Winemakers Mumm Napa affiliates, based in the United States. A distinction is made between the Brand Companies and the Market Companies for Australia and New Zealand resulting in two entities for each country. Pernod Ricard’s African activities are managed by Pernod Ricard’s Europe, Middle East, Africa and Latin America Region and the related data are therefore included in the data for this Region. The social reporting indicators are selected to provide the Group with a reliable and accurate picture of its global footprint. The data collected enables Pernod Ricard to be increasingly socially responsible in respect of its employees worldwide. Scope of societal reporting Indicators relating to responsible drinking are included in the social report. The indicators cover all Pernod Ricard affiliates (Brand Companies and Market Companies) that are required to include their societal information in the social report, with the exception of certain entities. This is because the roll-out of the S&R strategy and the associated action plans are managed by a sole affiliate when several affiliates are in the same country. These entities do not have to send information to the Group’s reporting system.

Pernod Ricard Universal Registration Document 2019-2020 120

Made with FlippingBook flipbook maker