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SUSTAINABILITY & RESPONSIBILITY (S&R) PROTECTING THE PLANET

Breakdown of packaging weight (tonnes)

identified all non-recyclable primary packaging and packaging components that might compromise the recycling of primary packaging according to the recyclability criteria of CITEO, the environmental body that oversees and supports the recycling of household packaging in France. More than 99% of the Group’s packaging (by weight) is recyclable. Next year, actions will be taken on non-recyclable or potentially disruptive packaging, looking at alternative solutions with a view to achieving 100% recyclable packaging. However, although the packaging is recyclable, in practice not all packaging is recycled because the recycling infrastructure in some countries does not always allow this. The Group is therefore committed to participating in systems for the collection of packaging in support of recycling (see the following section). The third aspect is to incorporate more recycled material into packaging. For example, Absolut has increased the percentage of cullet in its glass bottles from 48% to 54%. The fourth aspect is based on the use of bio-materials. Pernod Ricard Brasil has replaced plastic caps made from oil with caps produced from sugarcane ethanol for local brands such as Montilla rum or Orloff vodka. Apart from packaging, other items also consume resources and are a possible source of pollution, and must be designed to minimise their impact on the environment. This is particularly the case with promotional merchandise and drinks accessories such as cocktail straws. In January 2018, the Group banned the use of non-biodegradable plastic straws and cocktail stirrers by eliminating them or replacing the straws with biodegradable versions. Participation in systems for the collection 3.5.6.4 of packaging in support of recycling and reuse Most packaging waste produced by the Group’s activities is generated after final consumption of the products in the markets (end-of-life waste for products sold). It is therefore vital that consumers or clients can sort their packaging so that it can be recycled or reused. In Europe, Pernod Ricard contributes around €6 million to a system that improves the collection and recycling of domestic packaging, including glass. In the United States, Pernod Ricard USA joined the “Glass Recycling Coalition” which unites all players in the chain (glass manufacturers, bottlers, recycling service providers, etc.) to foster efficient and economically viable recycling channels. In Brazil, the Group affiliate joined the “Glass is Good” project, whose purpose is also to increase the rate of glass recycled by involving all players in the sector. In India, empty bottles are collected in cafés, hotels and restaurants and washed before being reused at production sites, saving between 10,000 and 20,000 tonnes of glass each year.

2 % 1 %

Caps, labels, covers

PET, Pouches & Bag in boxes

4 %

Other: ceramic, crystal, etc. 0 %

'ŝŌ ďŽdžĞƐ

8 %

Cardboard

Glass 85 %

The first focus of eco-design is to optimise the quantity of packaging used. The Group’s wine and Champagne brands have been at the forefront of numerous achievements in terms of reducing glass weight. The weight of the bottle has thus been reduced by 7% for the Mumm and Perrier-Jouët standard Champagne bottle, 25% for the Café de Paris sparkling wine, 30% for the Spanish wine, Campo Viejo, 12% for Mumm Napa in California and 28% for Jacob’s Creek wines, when compared to 2008/2009. Progress has also been made in this area for the spirits brands, in particular with The Absolut Company announcing the launch of a lighter version of the brand’s iconic bottle in 2015, with an average weight saving of 13% depending on the format, while at the same time increasing the level of quality as perceived by the consumer. In addition, other measures have been adopted to optimise secondary packaging: changing the shape of cases to increase the number of bottles per palette (Jan Becher), using returnable cardboard boxes to transport PET plastic bottles (Pernod Ricard Brasil), etc. Since 2016, a Value Engineering project has been in progress for packaging. This identified ways of improving the environmental footprint of packaging, which should ultimately reduce the packaging weight of the Group’s main brands. Ballantines has already reduced the weight of its bottle by 15% (50 cl), Altos by 22% (75 cl) and Imperial Blue by 6% (18 cl). A second focus of eco-design is to select recyclable packaging materials. By nature, the main materials used are recyclable: glass, cardboard, plastic (PET), etc. However, product design must ensure that the treatments or accessories applied to such packaging, or the combination of various materials do not compromise its main characteristics. As part of the implementation of its Environmental Roadmap, the Group

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018