PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) PROTECTING THE PLANET

Distribution of energy consumption by activity

Between FY10 and FY18, renewable electricity used by the production sites rose from 29% to 74.5%. Around 90% of this electricity is covered by renewable energy certificates (42 sites use 100% renewable electricity), while 10% reflects the national energy mix. It should be noted that electricity consumed based on renewable energy certificates is counted as renewable energy, and that national data or data from suppliers is used to estimate the percentage of renewable electricity not covered by renewable energy certificates. Thus, the share of renewable energies in the energy mix increased by 13% to 14% between FY17 and FY18. In order to reduce its carbon footprint, the Group is also working to replace heavy fuel oil and coal with other, cleaner sources of energy. Energy consumption from fuel oil has fallen by 54% since 2009/10, and that from coal by 15%, with these sources being replaced by natural gas. The following table shows various examples of initiatives taken to reduce CO 2 emissions, in some cases achieving carbon neutrality.

sŝŶŝĮĐĂƟŽŶ ŽŶůLJ 1 %

1 %

sŝŶŝĮĐĂƟŽŶ ĂŶĚ ďŽƩůŝŶŐ ŽĨ ǁŝŶĞƐ 9 % 4 %

ŐĞŝŶŐ

1 %

Other items

ŽƩůŝŶŐ

84 %

ŝƐƟůůĂƟŽŶ

Use of cleaner, more sustainable energy sources Pernod Ricard’s industrial activities use energy in different forms. Sources of energy used by the production sites

4 % 3 %

Other energy

Coal

8 %

Fuel oil

19 %

Electricity

Natural gas 66 %

Country Australia Scotland

Actions to reduce Scope 1 or 2 CO 2

emissions

Installation of 2.8 MW of solar panels by May 2019, reducing CO 2

emissions by 2,600 tonnes per year.

Replacement of heavy fuel with natural gas at the Glenlivet distillery, reducing the site’s direct CO 2

emissions by 30% per unit

of pure alcohol produced.

India

Installation of 5,000 m 2 of solar panels on the roofs of production buildings, which generated 168 MWh of renewable energy in 2018. Selecting new brewing and distillation technologies during the extension of the Midleton distillery will reduce energy consumption by 30% per unit produced. Energy optimisation resulting in a 45% reduction in energy consumption since 2004. Replacement of carbon energy sources with clean energy: the three production sites are now powered by renewable electricity, and the oil-fired boiler at the Ahus bottling site was replaced by the use of district heating. Achieving carbon neutral production sites with a residual CO 2 emissions offsetting programme.

Ireland

Sweden

This year, the Group introduced an internal carbon price of 50 euros per tonne of CO 2 technology, and to expedite its transition to less carbon-intensive solutions.

to encourage affiliates to invest in emission-reducing

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018