PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) PROTECTING THE PLANET

Water consumption and industrial site 3.5.4.2 performance A distinction should be made between water abstraction, which covers the total volume of water taken from the environment (groundwater, surface water, public water supply network, etc.) regardless of what it is used for, and water consumption, which only covers the amount of water taken with a measurable impact on the environment. As such, the use of river water to cool down a distillery when the water is returned to the same river without any alteration to its chemical, biological, thermal or other characteristics, is deemed water abstraction and not water consumption. Origin of the water consumption from industrial sites

Water abstraction from industrial sites per unit (distilled alcohol)

l/l PA

100 120 140 160

143.3

113.6

111.4

0 20 40 60 80

24 %

Public network

FY10

FY17

FY18

Ground water 46 %

tĂƚĞƌ ĂďƐƚƌĂĐƟŽŶ ƉĞƌ ƵŶŝƚ ;ůͬů W Ϳ

River, lake or dam, other source 30 %

Water consumption from industrial sites per unit (distilled alcohol)

l/l PA

10 15 20 25 30 35 40

Distribution of water consumption by activity

36.3

1 %

sŝŶŝĮĐĂƟŽŶ ŽŶůLJ 2 %

30.0

28.9

ŐĞŝŶŐ

Other items 1 %

sŝŶŝĮĐĂƟŽŶ ĂŶĚ ďŽƩůŝŶŐ ŽĨ ǁŝŶĞƐ 5 %

ŽƩůŝŶŐ 12 %

0 5

79 %

ŝƐƟůůĂƟŽŶ

FY10

FY17

FY18

tĂƚĞƌ ĐŽŶƐƵŵƉƟŽŶ ƉĞƌ ƵŶŝƚ ;ůͬů W Ϳ

In FY18, 25.9 million m 3 of water was taken by the Group’s industrial sites. Only 6.7 million m 3 constitute water consumption as defined above, the rest being exclusively used by cooling facilities and restored without any impact on the environment. Around 79% of this volume was consumed by the distilleries, which remain the principal sites for water consumption by Pernod Ricard. The water used to adjust the degree of alcohol in products accounts for 0.5 million m 3 ( i.e. 7.3% of the Group’s total consumption). Adjusted for units produced (m 3 /kl PA), both the quantity of water taken and water consumption have fallen by 22% and 20% respectively compared with 2009/10, thus achieving the 20% reduction targeted by the 2020 Roadmap two years ahead of schedule. The Group will pursue its efforts to exceed this target over the next two years, while setting ambitious new targets for 2030.

Water management tailored to meet 3.5.4.3 local challenges Because water resources are unevenly distributed throughout the world, particular attention is paid to water management in sites located in geographical regions where water is a sensitive resource. To identify these geographical regions, the Group relies on the Overall Water Risk Index on the Aqueduct tool developed by the World Resource Institute (WRI) and a questionnaire developed in-house covering the physical, regulatory, social and reputational risks. In 2015, all of the Group’s production affiliates submitted data for these tools. Based on the results, the sites can be categorised as high, significant or low risk. As such, of Pernod Ricard’s total production units: seven sites are located in or in the immediate vicinity of high-risk ● areas. These seven sites account for 5% of the Group’s total consumption and are divided between two countries (India and Australia). The water used by these sites decreased by 36% between 2008 and 2018;

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018