PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) A STRATEGY BUILT AROUND THE CONCEPT OF “CRÉATEURS DE CONVIVIALITÉ”

Governance 3.1.2 The Board of Directors is tasked with evaluating the relevance of the ● Company’s S&R commitments and monitoring their implementation within the Group through the Nominations, Governance and CSR Committee. The responsibilities of the Executive Vice President of Human ● Resources include S&R. A S&R Strategic Committee includes employees from all regions and ● functions. Its primary missions are to examine and make recommendations on strategic S&R challenges to the Executive Committee, to ensure the proper implementation of S&R initiatives and to validate the assessment of the progress made each year. A network of S&R leaders from more than 86 countries operate ● under the management of their affiliate to implement the strategy at a local level. Materiality matrix 3.1.3 Pernod Ricard creates value by maintaining an active dialogue with its stakeholders in order to develop a better understanding of their expectations. Its S&R strategy is based on the identification, understanding and prioritisation of the themes covered during this dialogue, which are deemed to have a major impact on the Group’s ability to create short, medium and long-term value.

In 2016/17, the Group is unveiling its materiality matrix. It is the result of a long process that began with a questionnaire completed by more than 1,300 stakeholders: employees, investors, consumers, suppliers, public authorities, NGOs, and experts. A 3-step methodology: identification of the main S&R topics thanks to an analysis of all ● information provided by S&R representatives in the Group’s affiliates; topic prioritisation by external stakeholders, in accordance with the ● importance of subjects to be addressed by a Group such as Pernod Ricard, and by internal stakeholders, in line with the actual and potential impacts of those subjects on the Group’s activities; detailed review and final validation of the matrix by the Executive ● Board. The materiality matrix highlights the actions on which Pernod Ricard should focus on as a priority. Approved by the Executive Board, it will be serve as a dialogue tool for future stakeholders’ consultations, linked with the S&R strategies and the actions to act upon.

MODERATE HIGH

Product

quality

_ P R I O R I T Y A C T I O N S E X P E C T E D B Y S T A K E H O L D E R S _ Human rights Agriculture and biodiversity Water use Ethical alcohol ĐŽŵŵƵŶŝĐĂƟŽŶ Responsible purchasing Packaging and waste

Responsible drinking

and balanced teams

Business transparency and ethics

Employee development ĂŶĚ ǁŽƌŬŝŶŐ ĐŽŶĚŝƟŽŶƐ

Climate

change

Community

engagement

_

F O C U S A C T I O N S F O R P E R N O D R I C A R D _

MODERATE

HIGH

86

PERNOD RICARD REGISTRATION DOCUMENT 2017/2018