PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) PROTECTING THE PLANET

Ambition

2020 targets

Progress

Management of resources pillar Conserve water resources locally.

100% of the irrigated vineyards used by the Group are equipped with a drip irrigation system. 20% reduction in water consumption per unit produced at production sites between 2009/10 and 2019/20. 100% of sites located in high water risk areas have implemented an action plan for managing water resources. 20% reduction in energy consumption and 30% reduction in CO 2 emissions per unit produced at production sites between 2009/10 and 2019/20.

100% of vineyards were irrigated by drip irrigation at the end of June 2018. From FY10 to FY18, reduction of 20% in water consumption per unit produced. The sites at risk were mapped, and an action plan has been established for the seven sites deemed high-risk.

Reduce energy consumption and greenhouse gas emissions along the entire production chain.

From FY10 to FY18, a 17% reduction in energy consumption and a 30% reduction in CO 2 emissions per unit.

Reduce the impact of waste. Aim for zero waste to landfill at production sites by 2020. In FY18, 748 tonnes – or just 2% of total waste – were sent to landfill. Aim for 100% recyclable packaging at consumer level.

More than 99% of our primary and secondary packaging is recyclable according to the CITEO recyclability criteria (see www.citeo.com).

Brands and consumers pillar Place environmental concerns at the heart of our brands and meet our consumers’ expectations in this regard.

The Group’s priority brands incorporate eco-design principles into their product development.

A new guide is being developed to help marketing teams integrate eco-design into their development. This will be rolled out in 2019. 16 of the Group’s priority brands have conducted a life-cycle analysis in compliance with the environmental labelling regulations.

The Group’s priority brands have conducted a life-cycle analysis and are in a position to provide information regarding their impacts to consumers.

Some of the targets of the 2020 Roadmap have already been achieved. The Group will pursue its efforts to exceed them over the next two years, while setting ambitious new targets for 2030. The series of actions under the 2020 Roadmap give substance to the Group’s five areas of commitment, which are described below. Efficient management system 3.5.2 Organisation and certification 3.5.2.1 In accordance with the principles outlined in its Environmental Policy, Pernod Ricard has deployed dedicated environmental management systems in each of the countries in which it has production sites. These systems are based on the following principles: promoting affiliates’ accountability: each affiliate is fully responsible ● for identifying and determining how to reduce its own environmental impact and how to apply the Group’s policy locally. The Headquarters’ Sustainable Performance Division oversees and coordinates measures at Group level, notably by setting shared objectives, monitoring the performance of affiliates, circulating guidelines that include minimum requirements and sharing best practices. Each Brand Company is required to evaluate its performance annually against these requirements, and to put in place compliance action plans if the requirements are not met; the policy of ISO 14001 certification (Environmental Management): as ● of 30 June 2018, 93% of the production sites operated by the Group were certified to ISO 14001, which corresponds to 99.5% of the Group’s total production of finished products.

In 2018, a new “environment” guideline was issued to implement the Group’s environmental policy outside of its production sites. It outlines the best practices and minimum environmental requirements applicable to all of the Group’s activities, both for the Brand Companies and the Market Companies. In addition, “Green Office” guidelines has been specifically developed for administrative sites to engage all employees on the subject of the environment. The Group’s target is that all Group employees at its office sites (administrative sites, head offices, etc) meet the minimum requirements of these guidelines by 2020. This year, an internal competition coordinated by the Youth Action Council (YAC) network enabled 21 affiliates to engage with this issue. Representatives from the affiliate that won the challenge (Pernod Ricard India) were rewarded with a visit to the coffee plantations that supply the Kahlúa brand in Mexico. A new challenge will be launched in 2018 to engage other administrative sites. Currently, more than 50% of the Group’s employees work in offices where the Green Office rules are in effect. Environmental compliance and pollutants 3.5.2.2 This year, four environmental incidents were reported to local authorities, no administrative non-compliance was found, and no complaints were received from third parties. This includes all types of potential impact that a manufacturing site may exert in particular odours and noise. The four environmental incidents reported to the authorities relate to: a leak from a wine tank into the external treatment plant of a ● production site in France; contamination of a watercourse in Scotland by waste water from a ● distillery;

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