PERNOD RICARD - Universal Registration Document 2019-2020

4. RISK MANAGEMENT Risk factors

Human safety risk  (1) 4.

RISK IDENTIFICATION AND DESCRIPTION

POTENTIAL IMPACTS ON THE GROUP

Preventing and managing occupational risks is something the Company owes its employees. The notion of “occupational risk” can be defined as all threats to the health of employees encountered in the context of their professional activity. They may result in an accident or a so-called “occupational” illness. A non-exhaustive list of occupational risks Pernod Ricard is committed to preventing is as follows: risks relating to noise and vibrations; — electrical risk; — fire and explosion risk; — road risk; — risks relating to the use of certain machines or work equipment; — and psychosocial risks. — In addition, teamwork, whether in the factory or in the offices, figures prominently in all the Group’s subsidiaries. The Covid-19 pandemic and the risk of transmission may therefore exist - as in other areas of life - in the Group’s facilities.

Personal injury is one of the main potential impacts for the Group. Reputational impact related to inadequate management of working conditions must also be considered. The most serious impacts are: the death of employees, subcontractors, visitors or other third — parties; permanent disability of employees, subcontractors, visitors or — other third parties; and occupational illness. — Reputational impact related to inadequate management of working conditions must also be taken into account. The active and widespread circulation of a virus such as Covid-19 could lead to repeated absences due to illness, the implementation of home working measures or the temporary stoppage of certain sites leading to productivity losses for the Group.

RISK CONTROL AND MITIGATION The Group has therefore embarked on a process to reduce workplace accidents by launching a comprehensive inventory of industrial sites with the greatest potential for improvement at the end of 2017. The main sites are now assessed by an external company in accordance with specific criteria in terms of both the safety culture and the ISO 45001 "Occupational Health and Safety" management system. Building on this overview and the commitment of senior management, the Group has signalled its goal of becoming leader in 2025 in the wine & spirits sector in terms of Health and Safety. This goal is embodied in a programme known as “Taking care of each other”, built on the following three strategic pillars: develop a culture where safety is central to the Group’s values of conviviality; — engage, motivate and empower all employees and subcontractors on the issue of safety; and — improve our operational efficiency through excellence in Health and Safety. — This programme is part of the Group’s S&R strategy and has gradually been extended to all affiliates. Finally, the protection of the Health and Safety of its employees lies at the heart of the Group’s decisions by rigorously applying the recommendations of local authorities and those of the World Health Organization.

(1) Note that this risk is also covered in Section 3.3.2.3 of the Extra-Financial Reporting.

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Pernod Ricard Universal Registration Document 2019-2020