PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

3

SUSTAINABILITY & RESPONSIBILITY (S&R) PROTECTING THE PLANET

Carbon footprint of the Group (Scopes 1, 2 and 3; in tonnes of CO 2 )

The Group intends to pursue its efforts to cut emissions even further over the next two years, while setting an ambitious new target for 2030. CO 2 emissions at production sites (Scopes 1 and 2)

Other items 167,912 t

Capital assets 298,567 t

Agricultural raw materials 855,819 t

tCO

/kl PA

2

3.0

WƌŽĚƵĐƟŽŶ 296,812 t

2.5

2.0

1.82

Transport 329,138 t

1.5

1.33

1.28

Packaging 836,040 t

1.0

0.5

The emissions taken into account to make this assessment are emissions relating to: products and services purchased: agricultural raw materials and the ● purchase of glass and cardboard; upstream and downstream transport of finished products; ● the operation of all production sites; ● Group fixed assets; ● other categories such as waste generated at production sites, ● business travel, employee commuting, end-of-life of products sold, and extraction and transportation of energy sources used by production sites (not taken into account in Scopes 1 and 2). Emissions related to the following factors are not taken into account in this assessment due to their minor significance and the relative uncertainty of the data: purchases of packaging excluding glass and cardboard (less than 1%), purchases of promotional merchandise (less than 5%), delivery from direct customers to the end user, vineyard energy consumption (less than 1%), refrigerant gas leakage (less than 1%). The following categories (to be reported in line with the GHG Protocol) are considered irrelevant, as they do not meet the inclusion criteria for the carbon footprint of the Group: franchises, processing products sold, use of products sold, investments and upstream leased assets. The Group production sites represent 11% of its overall footprint (Scopes 1 and 2). The majority of emissions came from Scope 3, which amounted to 2.5 million tonnes of CO 2 equivalent from four main elements: agricultural raw materials (31%), packaging (30%, 27% of which was for glass), transport (12%) and fixed assets (11%). The main options available to the Group to reduce its carbon footprint are directly controlled production sites and packaging, followed by logistics and agricultural raw materials. Due to the lack of reliable data, fixed assets give a less accurate cost-based estimate. Reduction of CO 2 emissions 3.5.5.3 at production sites (Scopes 1 and 2) In FY18, emissions from production sites (Scopes 1 and 2) amounted to 296,812 tonnes of CO 2 equivalent, compared to 357,654 tonnes in 2009/10. Adjusted for units produced (litre of distilled alcohol), this represents a 4% decrease on 2016/17, or 30% on the 2009/10 baseline year. The 30% reduction targeted by the 2020 Roadmap has therefore been achieved. This reduction is explained in part by the improvement in the energy efficiency of installations, and also by the use of less carbon-intensive energy. Monitoring CO 2 emissions at our production sites

0.0

FY10

FY17

FY18

Improving the energy efficiency of industrial facilities At production site level, actions are based on four levers to increase energy efficiency: continuous monitoring of energy consumption; ● in-depth energy assessments, with the setting of energy-efficiency ● targets; roll-out of consumption reduction programmes requiring the ● management of processes and utilities, and which may involve significant investment; implementation of energy management systems: to date, the ● Nöbbelöv (Sweden), Midleton (Ireland) and Gallienne (France) distilleries and the Campo Viejo (Spain) vinification site are ISO 50001 certified. In FY18, energy consumption per unit produced amounted to 6.2 kWh per litre of pure distilled alcohol, down 1% on the previous year and 17% on 2009/10, aiming for a 20% reduction by 2019/20. This represents a total consumption of 1,447 GWh, 84% of which is used by distilleries. Energy consumption per unit (distilled alcohol)

MWh PCI/kl PA

0 1 2 3 4 5 6 7 8 9

7.5

6.3

6.2

FY10

FY17

FY18

111

PERNOD RICARD REGISTRATION DOCUMENT 2017/2018