PERNOD RICARD - Universal Registration Document 2019-2020

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

Policies

Targets

Achievements

2030 S&R Roadmap

100% of our terroirs mapped and risk-assessed Definition of the Group's Sustainable Agriculture Key Principles 100% of key raw materials  (1) certified to sustainability standards 100% of key raw materials  (1) covered by projects addressing the main sustainability issues (water, agrochemicals…) Reduce carbon footprint of agricultural raw materials in order to contribute to the Group global Scope 3 target (50% intensity reduction) (see subsection 3.3.3.2 “Climate change: reduction”).

In FY20: design of the terroir risk mapping tool — training of the procurement team —

Key raw materials in this context refers to the proportion spent by the Group. It covers cereals and malted cereals, grapes and wines, agave, cane and beet products, (1) and five key flavouring ingredients.

There are two aspects to the Group’s efforts in relation to agricultural product procurement: responsible procurement process, Blue Source — (see Subsection 3.3.2.5 “Responsible Supply Chain”) allows Pernod Ricard to identify and evaluate direct suppliers at risk in order to develop mitigation action plans; identification of environmental and social risks in our terroir — (agricultural activities) based on a study of the production of farm raw materials used by the Group’s Brand Companies to rank agricultural practices in terms of their environmental and social risks levels. For crops representing a high sustainability risk, action plans must be implemented by the affiliates, and alternatives examined to secure sustainable supplies. The direct purchasing of agricultural products by affiliates has given rise to various partnership initiatives including: in Scotland, 100% of the barley purchased by Chivas Brothers is — certified to “Scottish Quality Cereals” or “Red Tractor” standards; in Mexico, Kahlúa worked with the Fondo Para La Paz and Ocotempa — NGO, a Mexican coffee community, to develop a sustainable model for coffee production. This “Coffee for Good” programme comprises social, economic and environmental criteria. This year, we sourced 28 t of coffee from these communities and within the next four years, 100% of the coffee sourced by Kahlúa will be sustainably grown;

the Group has made sugar cane a priority. This is because it is often — grown in lesser developed countries where social protection, working conditions, and respect for social rights or environmental protection are not guaranteed. In 2015, Pernod Ricard joined the Bonsucro association, which aims to develop internationally recognised responsible practices for the sugar cane industry. To meet its 2030 ambitions, this year the Group started to assess risks and opportunities related to the terroirs in its agricultural supply chains using a dedicated Terroir Risk mapping Tool. The objective is to map the origins of agricultural raw materials and to identify social and environmental issues in the local environment where they are grown. At the same time, the Group is also working on defining its Sustainable Agriculture Key Principles, which lay the foundations for a journey aimed at combating climate change and preserving biodiversity. This strategy will be implemented using two main levers: the selection and then the implementation of the best standards — aimed at sustainably certifying 100% of our key raw materials (certification by a third party or internal verification according to our own framework); the exploration of initiatives and partnerships, the setting up of — projects and then the sharing of practices with positive impacts.

Preserve and enhance biodiversity 3.3.1.3 Pernod Ricard is committed to protecting and developing the biodiversity of ecosystems everywhere it operates and distributes its products. All affiliates, Brand Companies with raw agricultural supply chains or Market Companies with purely distribution activities, will be part of this global effort.

Policies

Objectives

2030 S&R Roadmap

100% of affiliates will be engaged in a strategic biodiversity project.

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Pernod Ricard Universal Registration Document 2019-2020

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