PERNOD RICARD - Universal Registration Document 2019-2020

3. SUSTAINABILITY & RESPONSIBILITY The four pillars of the good times from a good place roadmap

The four pillars of the good times from a good place 3.3 roadmap Nurturing Terroir 3.3.1

Pernod Ricard is committed to developing and promoting sustainable farming practices both within its owned land and throughout its agricultural supply chains: reducing the use of fertilisers; — using crop protection products that are less environmentally harmful; — reducing water consumption, using drip irrigation techniques where — possible; preserving soil and biodiversity; — training and knowledge-sharing on sustainable agriculture and — practices with farmers. Improve sustainability performance and develop regenerative agriculture in the Group’s vineyards Pernod Ricard’s goal is to become a leader in sustainable and regenerative agriculture  (1) within the wine industry and ensure its vineyards are as sustainable as possible. The vineyards run directly by the Group cover 5,602 hectares in seven countries: New Zealand (45%); — Australia (24%); — France (13%); — Argentina (9%); —

Terroir means earth or soil in French, the birthplace from which all of Pernod Ricard’s products take their characters. Across its business, the Group sources its natural ingredients from over 276,000 hectares of land: Europe (grain, grapes), Asia (grain, aromatic plants), the Americas (sugar cane, grain, agave) and Oceania (grapes). Pernod Ricard is therefore committed to nurturing each terroir and its biodiversity. This includes responding climate change challenges to ensure quality ingredients now and for generations to come. The Group is proud that its brands are deeply rooted in their countries of origin and play an important role in the local communities where they are created. In FY20, a total of around 2.47 million tonnes of agricultural raw materials was used from: the Group’s vineyards and farms (49,439 tonnes); — direct purchases of raw agricultural products (441,705 tonnes); and — purchases of processed products such as sugar and alcohol — (1,981,273 tonnes). AGRICULTURAL LAND CORRESPONDING TO RAW MATERIALS USED IN FY20 (HECTARES)

915 Potatoes

Spain (5%); — China (2%); — United States (2%). —

Beet 1,720 Sugar cane 9,565 Maize 18,435 Wheat 24,201

3,984 Aromatic plants 8,743 Agave

Various cereals 135,002

Malted cereals 35,780

Vines 37,747




2020 Environmental Roadmap

100% of the vineyards operated by the Group certified to environmental standards. 100% of irrigated vineyards to be drip irrigated. By 2025: pilot local models for regenerative farming systems in the Group’s vineyards in eight wine regions, capturing more carbon in soils, and share them with the wine industry.

99% of the vineyards are now certified. 100% of our irrigated vineyards are fitted with drip irrigation systems. Pernod Ricard will develop regenerative agricultural models for vineyards that could later be shared with the wine industry.

2030 S&R Roadmap

(1) Regenerative agriculture refers to a system of farming principles and practices that increases biodiversity, enriches soils, improves water quality, captures carbon in soil and enhances ecosystem services. Over the long term, it leads to increased yields, improved resilience to climate instability, and improved quality of life for farming communities.


Pernod Ricard Universal Registration Document 2019-2020

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