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SUSTAINABILITY & RESPONSIBILITY (S&R) PROMOTE RESPONSIBLE DRINKING

PROMOTE RESPONSIBLE DRINKING 3.3

Furthermore, a Health Risk Management Committee chaired by the Group’s Operations Director monitors the consideration of risks linked to product health safety and in particular emerging risks linked to scientific knowledge or new regulations. The Committee relies upon an annual Group analysis plan, which in 2017 covered 72 finished products with a total of 2,400 analyses. To our knowledge, the Group’s products do not contain nano-ingredients. Prevention of high-risk drinking habits 3.3.1.2 The Chief Executive Officers of the affiliates uphold this commitment. Their annual bonus calculation includes S&R criteria, including one related to responsible drinking, showing the strategic importance given to this policy. The Group’s strategy to combat alcohol abuse covers the following five areas: advocating consumption in moderation, in particular through its Code ● for Commercial Communications; combating drinking and driving: Pernod Ricard recommends ● abstaining from drinking before driving and develops dedicated initiatives, for example “designated driver” initiatives; raising awareness among young people of the risks associated with ● alcohol misuse and abuse. The Group strives to prevent alcohol consumption among minors by developing programmes aimed at delaying the age of first alcohol consumption and first intoxication and works with young adults to combat alcohol misuse and abuse; dissuading pregnant women, for whom Pernod Ricard recommends ● abstinence from drinking alcohol; making staff aware of their responsibilities internally through training ● and awareness campaigns. The Group has allocated significant resources to making this commitment a reality: the dissemination of research results, support for medical research, prevention campaigns and programmes involving stakeholders. Pernod Ricard is, for example, a founding member of the Fondation pour la recherche en alcoologie (FRA – Foundation for Alcohol Research, formerly IREB), an independent research organisation dedicated to alcohol and its impacts on society, which publishes and finances studies on these subjects in France. A number of initiatives are also performed at local level by the affiliates. In FY18, 85% of affiliates implemented at least one initiative to promote responsible drinking. Since 2011, the Group has chosen to go further by launching a special event for the entire Group, Responsib’All Day. This event aims to promote the sharing of best practices and to take concrete action, engaging all of the Group’s affiliates and employees around a common S&R theme throughout the event. The aim is to transform its employees into ambassadors of Pernod Ricard’s S&R policy. The first five editions were devoted to the promotion of responsible drinking. In June 2014, Pernod Ricard launched the first global application, “Wise Drinking” (www.wise-drinking.com/app) helping consumers to estimate their alcohol consumption and get home safely by selecting appropriate means of transport.

In accordance with its “ Créateurs de convivialité ” tagline, Pernod Ricard is fully committed to promoting responsible drinking and conviviality. To ensure that consuming our products is an enjoyable and safe experience, Pernod Ricard promotes moderation in alcohol consumption, and works to combat excessive consumption through awareness-raising and educational campaigns, undertaken individually or in partnership with other industry members, not-for-profit organisations and public authorities. The Group has also defined strict internal criteria for responsible marketing through its Code for Commercial Communications.

Societal impact 3.3.1

of the Company’s products and services

Product health and safety for consumers 3.3.1.1 Pernod Ricard aims to provide its customers with products of the highest quality, and places particular importance on consumer health and safety. This has resulted in a significant commitment in terms of the prevention of risks associated with alcohol abuse, but also a strict policy in terms of food safety during product preparation. The control of product health and safety is based on the implementation of the hazard analysis critical control point (HACCP) method which aims to identify all the points for potential risks in the manufacturing process and to control these with appropriate preventive measures. Despite the fact that Wines & Spirits are less exposed to food safety risks than the products of other food industry segments, Pernod Ricard decided to proceed with the gradual certification of its facilities in accordance with ISO 22000, “Food safety management systems”. By 30 June 2018, 78% of the sites were ISO 22000 certified, representing 99% of the volumes produced and covering all the Group’s strategic brands. Certified distilleries account for 90% of alcohol produced. The internal standards established by Pernod Ricard for its industrial activities include different specific guidelines, the aim being to control risks such as the accidental contamination of a product or the presence of a foreign body in a bottle. An absolute priority for the Group is to ensure its products comply with the regulations that apply to each of its various markets. In addition, a Group Intranet site called “Complaint Management System” has been developed to record and track consumer complaints and any other quality issues in real time and to immediately inform the affiliate concerned so that corrective action can be taken. Nearly 4,500 complaints were recorded in this way during the FY18, and these were handled so as to improve satisfaction levels for the Group’s customers and consumers alike. In the case of a serious product health and safety concern, the system also informs the Headquarters instantly, allowing for very rapid response. Each affiliate has a crisis management procedure that can be activated particularly in the case of a health risk caused by a product with, if necessary, a product recall. These procedures are subject to regular testing, training for people involved and updates.

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