PERNOD RICARD - Universal Registration Document 2019-2020

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

Key performance indicators Number and %

FY19

FY20

% of the payroll invested by the Group in training

1.7%

1.7%

Number of employees trained  (2)

17,179

17,858

% of total workforce trained  (2)

90%

93,5%

Training hours  (2)

382,215

427,350

Average number of hours of training received by employees  (2) per year

22

24

% of employees received at least one performance review (1)

91%

93%

Number of employees participated in the LeAD UP programme  (1)

187

162

Permanent contracts. (1) Fixed-term and permanent contracts. (2)

Diversity 3.3.2.2 As a consumer-centric company, Pernod Ricard believes that its people awareness on the value of Diversity throughout the business with a need to reflect its consumers and the world in which it operates. Seen focus on Gender and Nationality and laid the foundation to address any as a source of richness and a real performance driver for the Company, other dimension of Diversity, as may be relevant in the various parts of Pernod Ricard has made diversity a focus for its leaders through the the Group. Major global targets were set following the campaign and “Better Balance for Better Business” initiative. This program aims to raise became part of the 2030 S&R roadmap.

Policies

Targets

2030 S&R Roadmap

By 2022, ensure equal pay across the business (gender pay equity). — By 2030, Top Management team  (1) will be gender balanced  (2) . —

Internal definition: Band C and above. (1) Balanced teams considered achieved with a range of 40-60% of women and men. (2)

Local affiliates’ leadership teams set up their own Better Balance for Better Business agenda, supported by the Global Initiative. Between 2015 and 2020, the proportion of women in the Group “Top 500” rose from 19% to 26%. The new HR Strategy, TransfoHRm, announced in 2018, is an inherently Diversity friendly strategy. In particular, TransfoHRm looked at ensuring that key processes like talent development and management are fair and equitable, For example “Let’s Talk Talent”, the new Performance and Talent Assessment cycle. Supported by Workday, the Group HRIS global platform, Let’s Talk Talent is a consistent process, based on an objective assessment of performance and potential, which gives all employees equal chances to develop a successful and fulfilling career at Pernod Ricard. With the “How” of performance now as important as its “What”, with Managers better trained in performance evaluation and calibration the process is designed to overcome the traditional pitfalls of talent management to make Pernod Ricard a system more open to diversity. The Group has also become more visible on the Diversity challenge with an active participation in the main event of the last two editions of the Women's Forum in Paris (10 delegates, participation to the CEOs’ workshop and event sponsorship). Finally, at the end of FY 2020, and fully consistent with the fundamental objectives of TransfoHRm, the Group Global Talent Management

Director formally took on the additional responsibilities of Diversity & Inclusion to shift the focus of “Better Balance for Better Business” from the creation of more Diversity to focusing on Inclusion as a catalyst to accelerate Pernod Ricard performance. Regarding gender pay equity, the Company has launched a global project in the first half of FY20, partnering with an external independent specialist on pay equity. This global initiative has entailed an audit of over 70 countries. The idea was to identify the behavioral drivers and roots of pay gaps between male and female employees. First results are encouraging vs. market practice (currently 2.3%) and Pernod Ricard wants to strive towards equal pay across its business by 2022. This project will be part of a long-term systematic review of our compensation and talent practices to ensure strict pay equity across the Group. The Group strives to bring in young people through different types of contracts (apprenticeships, training, etc.). The Group also recruits and develops young graduates through VIE (international volunteers in business) and international young graduate programmes. These include the Jameson International Graduate Programme, Pernod Ricard Asia Regional Management Trainee Programme and the Martell Mumm Perrier-Jouët Ambassadors programme. Furthermore, Pernod Ricard University supports the work of the Youth Action Council (YAC)  (1) .

(1) Founded in 2013, the YAC is a think-tank made up of nine employees under 30. They are asked to provide Top Management with their generation’s view on Group strategic issues. The YAC has a two-year mandate to develop cross-company initiatives such as the “Green Office Challenge” or “Talent 4 Talent”.

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Pernod Ricard Universal Registration Document 2019-2020