PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) PROTECTING THE PLANET

Contributing to reducing 3.5.5 climate change

ten sites are located in or in the immediate vicinity of significant risk ● areas. These ten sites account for 5.5% of the Group’s water consumption and are divided between six countries (India, USA, China, Armenia, Argentina and Mexico). The water used by these sites decreased by 35% between 2008 and 2018; the other 76 sites, accounting for 89% of the Group’s consumption, ● are located in areas considered to be at a low risk. For each category, the Group has determined a water management strategy based on the risk level. Sites where the risk is low must as a minimum manage water resources efficiently on their premises. Sites where the risk is considered significant must also perform studies of their water catchment areas to ensure there is a balance, monitor any change in risk, and maintain a dialogue with the main stakeholders. Sites where the risk is considered high must take specific actions with local communities and other stakeholders to contribute to improving the local water management plan. By 2020, all sites located in or close to areas with a high or significant risk will need to have an ambitious water management plan in place that integrates the Group’s recommendations. To date, the Indian and Australian sites have defined a water management strategy and are at the action implementation phase. The survey will be repeated every five years to take into account the modifications made to the Aqueduct tool and changes in the different production areas. Some affiliates have already been working on this issue for several years. This is the case in Australia as well as India, where water is a major local issue. Pernod Ricard India applies the principle of the 4Rs: reduction, reuse, recycling and recovery. To date, the affiliate has thereby reduced its water consumption by 36% since 2010. It has also built 13 facilities for rainwater collection and storage, 13 dams, 40 recharge wells and 16 dredging projects corresponding to 365 million litres of water, equivalent to two years of water consumption for all the Indian sites. Treatment of waste water 3.5.4.4 In FY18, pollutants released into the atmosphere by the Group’s plants amounted to 926 tonnes of COD (chemical oxygen demand). There has been a significant decrease in this size compared to the previous year, partly as a result of the new waste water purification plant built at the San Raphael site in Argentina, and the waste water treatment plant which came into operation at the Glenlivet site in Scotland in 2017. In terms of volume, waste water accounts for approximately 4.4 million m 3 . Of this, 77% was discharged into a public sewer system, 17% was discharged into the environment following treatment, and 6% was recycled for vineyard irrigation. Chemical oxygen demand (COD) released into the natural environment

Challenges and strategy 3.5.5.1 The activities of Pernod Ricard generate CO 2

emissions in several ways,

and these contribute to climate change: directly, due to the use at our sites of fossil fuels (known as “Scope 1” ● emissions); due to the electricity consumed, which generated CO 2 emissions ● when produced by our suppliers: (known as “Scope 2” emissions); indirectly, through products (farm materials, packaging, etc.) and ● services (transport, etc.) purchased (“Scope 3” emissions). In order to help reduce climate change, the Group continues to adopt an approach, within its sphere of influence, based on two stages: assessing its carbon footprint throughout the production chain; ● implementing measures to reduce greenhouse gas emissions: ● directly at production sites, and ● indirectly with suppliers, based on the eco-design of products and ● the optimisation of the logistics chain. In 2017, Pernod Ricard demonstrated its commitment to a low-carbon economy by signing the French Business Climate Pledge together with 90 French companies. The Group also scored a B from the Carbon Disclosure Project (CDP) for its climate change management strategy. This score was received as part of the CDP’s Management level scoring, based on the medium and long-term targets set, the progress achieved, and the actions taken to reduce emissions. The Group has also joined the Science Based Targets initiative. This joint initiative between the CDP, United Nations Global Compact, World Resources Institute and WWF sets long-term targets compatible with a 2°C reduction by 2050. In a symbolic yet crucial gesture for employee engagement, in 2018 Pernod Ricard offset the CO 2 emissions stemming from its annual seminar held on the island of Embiez near Toulon. The seminar was attended by nearly 1,000 Group executives and Managers, who were asked to vote for the project that would offset the 3,000 tonnes of CO 2 emissions generated by the event. Assessment of the Group’s carbon 3.5.5.2 footprint Pernod Ricard’s overall carbon footprint is assessed using the GHG Protocol method. It amounted to 2.8 million tonnes of CO 2 equivalent for the entire Group in FY18.

t

2,500

2,000

1,932

1,500

1,177

1,000

926

500

0

FY11

FY17

FY18

110

PERNOD RICARD REGISTRATION DOCUMENT 2017/2018