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

Physical risks of climate change and natural disasters

Pernod Ricard production sites

Risks: severe weather events (tornados, floods, etc.) or natural disasters may damage physical assets at production sites. Moreover, rising temperatures and changing seasons may alter industrial processes and the availability of ingredients. Pernod Ricard might be slow to react to such climate change and fail to adapt its supply chain. Risks: these phenomena may also damage suppliers’ physical assets and affect the quality, quantity and geographical location of agricultural raw materials. Risks: due to the industrial nature of its activities and fast-changing environmental regulations, Pernod Ricard may fail to be fully compliant with new regulations and respond to stakeholder expectations. This may cause reputational damage. Moreover, distilleries emit CO 2 through the energy they use. Pernod Ricard may be impacted energy supply and price volatility. In addition, Pernod Ricard most water-intensive activities may impact water availability. This is especially true where they are located in water stressed areas. Opportunities: by reducing energy consumption and its associated CO 2 emissions, Pernod Ricard can reduce its operating costs. By implementing a virtuous circular mindset, Pernod Ricard could minimise waste at each step of its value chain and help preserve natural resources. Moreover, through good waste management, Pernod Ricard could transform waste into potential new raw material. Risks: Pernod Ricard’s upstream activities (packaging, etc.), product transportation, product distribution and product end of life are carbon-intensive activities. They may increase Pernod Ricard’s carbon footprint and accentuate climate change. Risks: Pernod Ricard’s product quality may be subject to an undetected deterioration (toxic contamination, alteration of taste, introduction of foreign objects into the bottles etc.), leading to health hazards, reputational damage, financial liabilities and product recalls. Risks: Pernod Ricard’s reputation may be impacted by consumers’ misuse of alcohol. Pernod Ricard’s activities may also be impacted by excessive and/or punitive regulations (restrictions on sales and marketing, availability of its products, increased taxes and duties) leading to lower revenues and profits without effectively reducing the harmful use of alcohol.

3.3.3 Circular Making 3.3.3.2 Climate change: reduction and adaptation

Pernod Ricard suppliers

3.3.3 Circular Making 3.3.3.2 Climate change: reduction and adaptation 3.3.1 Nurturing Terroir 3.3.1.1 Improve sustainability performance and develop regenerative agriculture in our vineyards 3.3.3 Circular Making 3.3.3.2 Climate change: reduction and adaptation 3.3.3.3 Preserve water resources 3.3.3.5 Reduce waste

Environmental impacts of operations

CO 2 emissions GHG emissions

Water management Waste management

Product and packaging environmental footprint

3.3.3 Circular Making 3.3.3.4 Circular packaging and distribution 3.3.3.2 Climate change: reduction and adaptation 3.3.3 Circular Making 3.3.3.5 Product quality and safety

Product quality

Constant high-product quality

Alcohol in Society The harmful use of alcohol by

3.3.4 Responsible Hosting 3.3.4.1 Promote responsible drinking

consumers, and excessive and/or punitive alcohol regulations implemented by

3.3.4.2 Responsible marketing 3.3.4.3 Consumer information 3.4 Ethics & Compliance

3.4.1.3 Transparency and integrity of strategies and influencing practices

Government to tackle harmful alcohol use.

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Pernod Ricard Universal Registration Document 2019-2020