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SUSTAINABILITY & RESPONSIBILITY (S&R) PRESENTATION AND IMPLEMENTATION OF THE MONITORING PLAN

PRESENTATION AND IMPLEMENTATION OF 3.6 THE MONITORING PLAN

To comply with Law 2017-399 of 27 March 2017, Pernod Ricard has embarked on a plan to monitor the risks relating to the business activities of the Group and its main suppliers and subcontractors during the financial year. The monitoring plan covers the following three areas: environment, health and safety and Human Rights. Several working groups made up of representatives from the Sustainability & Responsibility, Purchasing, Human Resources, Internal Audit, Production and Legal departments are involved in developing and implementing this plan.

The Group Pernod Ricard had already put in place various tools and procedures, while some of the information is contained elsewhere in Chapter 3, as well as in Chapters 2 and 4. The current chapter summarises Pernod Ricard’s monitoring plan and its implementation through the following five measures: (i) risk identification and mapping, (ii) introduction of measures to mitigate risk and prevent serious harm, (iii) risk assessment procedures, (iv) introduction of an early warning and whistleblowing system, and (v) monitoring system for the measures implemented.

Risk identification and mapping 3.6.1 Identification of the Group’s major risks relating to due diligence

Human Rights

Health and safety

Environment

Activities of the Company

The internal audit team based at Headquarters is in charge of implementing the audit plan, with the support of the audit teams in the Regions. The audit plan is drawn up once the Group’s main risks have been identified and analysed. Some risks are operational and some relate to CSR. The plan outlines the various cross-cutting issues that will be addressed. The findings of the work are then submitted to the Audit Committee, the Statutory Auditors and the Executive Board for examination and analysis. (see p. 99) Materiality analysis conducted in 2016 (see p. 86) Materiality analysis conducted in 2016 (see p. 86) Materiality analysis conducted in 2016 (see p. 86)

Global “iSay” survey canvassing the views of employees on 14 topics (see p. 93)

Global “iSay” survey showcasing the views of employees on 14 topics (see p. 93) Risks for employees: workplace risk analysis conducted by the Brand Company affiliates as part of their OHSAS 18001 certification Risks for consumers: product quality risk analysis conducted by the Brand Company affiliates as part of their ISO 22000 certification (see p. 141)

Identification of geographical areas at risk using the WRI Aqueduct Water Risk Assessment tool for water management and an internally developed questionnaire covering physical, regulatory, social and reputational risks (see p. 109)

Long-term environmental risk analysis conducted by Brand Companies for the 2020 Environmental Roadmap (see p. 105)

Activities of suppliers and subcontractors

Proactive supplier analysis based on the multi-part Blue Source process, which includes the Risk Mapping Tool (see p. 98)

Identification of environmental and social risks in agricultural activities, conducted in 2017 by the Brand Companies for the 2020 Environment Roadmap, allowing activities to be ranked by level of risk. Action plans must be put in place by affiliates and are undertaken to mitigate risks or secure supplies. (see p. 107)

During FY19, a study based on the United Nations Guiding Principles on Business and Human Rights (UNGPs) will be conducted on the Group’s supply chain to improve its due diligence on Human Rights

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