PERNOD RICARD - Universal Registration Document 2019-2020

3. SUSTAINABILITY & RESPONSIBILITY The main sustainaibility risks and opportunities

Risk/ opportunity

Sub-risk/ opportunity

Definition

Subsections of Section 3

Responsible supply chain

Human Rights & working conditions Environmental impact

Risks: Pernod Ricard may be legally involved with suppliers whose practices do not comply with Human Rights or environmental standards (child labour, forced/bonded labour, health and safety, toxic emissions etc.). This might cause reputational damage. Risks: agricultural practices in Pernod Ricard’s supply chain may have various negative effects on the environment (water availability, CO 2 emissions, biodiversity, competition of resources). Moreover, climate change may alter crop quality, areas of production and volumes produced.

3.3.2 Valuing People 3.3.2.5 Responsible Supply Chain 3.3.2.4 Human Rights

Sustainable agricultural supply chain

3.3.1 Nurturing Terroir 3.3.1.2 Promote and develop resilient agricultural supply chains

Compliance

Corruption & antitrust Risks: given the international scope of its activities Pernod Ricard may face compliance issues related to anti-corruption laws and other similar regulations, in its own operations or through its supply chain. This might cause reputational damage and financial loss.

3.4 Ethics & Compliance 3.4.1.2 Prevention of corruption and anti-competitive practices 3.4.1.3 Transparency and integrity of strategies and influencing practices

Data privacy protection

Risks: in light of the digital transformation of its activities, Pernod Ricard may face compliance issues related to data protection regulations (GDPR, General Data Protection Regulation) and fail to protect the personal data of its consumers. This might cause reputational damage and financial loss. Risks: due to insufficient career development management or a non-attractive compensation policy, Pernod Ricard may have difficulties to attracting and retaining the skilled people it needs. This may cause operational difficulties and impact its financial performance. Opportunities: 94% of turnover is generated internationally, and a growing number of consumers are women. Developing markets are the clear majority of the global human population and women account for half of the population. These customer groups and talent pools cannot be overlooked. Pernod Ricard builds on and promotes this diversity to increase innovation, business adaptation and opportunity. Risks: Pernod Ricard’s employees and contractors may be exposed to occupational injuries (burns, physical trauma, falls, toxic inhalation, etc.) or as a result of major industrial accidents (fires, explosions, etc.) or natural disasters.

3.4 Ethics & Compliance 3.4.1.1 Data privacy

People development & Safety

Talent management

3.3.2 Valuing People 3.3.2.1 Talent management

Diversity

3.3.2 Valuing People 3.3.2.2 Diversity 3.3.2.4 Human Rights

Working conditions and Health & Safety at work

3.3.2 Valuing People 3.3.2.3 Employee engagement & culture, working conditions and health & safety

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Pernod Ricard Universal Registration Document 2019-2020