PERNOD RICARD - Universal Registration Document 2019-2020

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

In line with the Group H&S policy, frequency/severity rates for workplace accidents, number of lost time and number of fatalities integrate newly acquired companies only in their second full fiscal year – this year, DrinksAndCo Marketplace SLU, Bodeboca, SL & Inverroche have been excluded from these indicators. Commuting accidents are no longer included in the number of accidents. They are thus not used to calculate frequency and severity rates. Conversely, frequency and severity rates now take into account the number of workplace accidents involving temporary staff (workers employed by a staff agency for a temporary period and directly supervised by Pernod Ricard). Training hours completed by employees are recorded, including both face-to-face training and e-learning hours. Employees are only counted as having received training once, regardless of the number of training courses they have attended. Headcount and FTE calculations consider employees leaving the group on the last day of the fiscal year as active. The related termination events are then included on the next fiscal to calculate departure rates & turnover. However, due to the change of tool in FY19, the terminations that occurred on the last day of FY19 have been wrongly included in the indicators of FY19 and cannot be included in FY20. Definition for the classification “Top Management” has been reviewed and reclarified after the FY19 publication. This classification reflects the employees from COMEX to Band C job levels. Following this, the FY19 figures on diversity have been amended to reflect the correct classification. Environmental indicators The Group footprint on agricultural land is assessed by the areas on which purchased agricultural raw materials are used. These equivalent areas are estimated on the basis of the agricultural yields of the various materials used by the Group (except for the agave footprint which is based on accurate land coverage). For transformed products, industrial yields are used to assess the quantities of agricultural materials purchased. The environmental performance of sites is expressed using various ratios. These are based on the business category in which the Group has classified the sites: distilleries: data broken down by volumes of pure distilled alcohol; — bottling sites: data broken down by volumes of bottled finished — products; wineries: data broken down by volumes made into wine; — vineyards: data broken down by surface area cultivated with vines. — At Group level, consolidated performance is expressed based either on: the amount of distilled alcohol for environmental impacts primarily — due to distillation (e.g. water or energy consumption), expressed in units per thousand litres of pure distilled alcohol (kl PA); the bottled volume or the volume of finished products manufactured — (including products delivered in bulk) when bottling or production is the main source of impact (such as in the case of solid waste), expressed in units per thousand litres (kl); the number of hectares occupied by vineyards for agricultural — properties, expressed in units per hectare (ha).

For industrial sites, this distinction is sometimes complex, as some sites have several activities. As such, since the time frames involved in bottling may sometimes be very different from those for distilling (aged spirits: whiskies, cognac, etc.), these figures may be difficult to interpret from year to year. Both calculation methods are therefore presented for some indicators. Setting overall Group quantitative targets for the quantity of water or energy consumed per unit produced, for example, becomes complex as the consolidation of targets depends on the business mix during the year and the consolidated indicator chosen. For that reason, the results expressed by the indicators should be used with care and interpreted over the long term. Where a significant reporting error from previous periods is identified, historical data is only readjusted if the impact on Group performance is greater than 1%. This is to allow for a better interpretation of results and trends. FY19 POS materials carbon emissions data have been used for FY20 figures. Definition for “renewable energy consumption” and “renewable electricity consumption” have been reviewed after the FY19 publication in order to respect the RE100 requirements. Since FY20: the total renewable electricity consumption is calculated with the — part covered by green or renewable energy certificates and the amount of renewable electricity produced and used on site; the total renewable energy consumption is calculated with the total — renewable electricity consumption and the amount of other renewable energy used on site (biogass, biofuel, etc.). Water Risk Assessment is realised using Aqueduct Water Risk Atlas, a tool developed by the World Resources Institute (WRI). The Internal Water Risk Index (IWRI) is calculated based on the blended rating from three Aqueduct indicators: overall Water Risk; — baseline Water Stress; — baseline Water Stress – 2025 projected using a “Business as Usual” — scenario. Three water risk levels are defined as a result of “Internal Water Risk Index” analysis: extremely high risk, sites with an IWRI higher than 4; —

high risk, sites with an IWRI between 3 and 4; — medium risk, sites with an IWRI between 1 and 3; — low risk, sites with an IWRI lower than 1. —

Any sites from the two highest risk levels ( i.e. 3 or higher) are required to replenish their water consumption through water projects. Dedicated co-packers only include bottling process activities with at least 90% of production volume associated to Pernod Ricard.

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Pernod Ricard Universal Registration Document 2019-2020