PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) PROMOTE RESPONSIBLE DRINKING

The industry’s five commitments 3.3.1.3 At the IARD (International Alliance for Responsible Drinking) conference in October 2012, the world’s leading producers of beers, wines and spirits, announced that they had signed up to five commitments covering 10 action areas, in order to reduce the harmful use of alcohol. These five commitments are: reduce alcohol consumption among young people under the legal ● minimum age; strengthen and expand codes of marketing practice; ● communicate information to consumers and develop responsible ● product innovations; reduce drink driving; ● enlist the support of retailers in reducing harmful alcohol ● consumption. These commitments are implemented over a period of five years and are reviewed annually by an independent third party. All the information and the details of the progress made are available at www.producerscommitments.org. Pernod Ricard has set precise and ambitious goals in order to gauge and monitor its contribution. The achievement of these goals is recorded in the Smart Barometer (www.smartbarometer.pernod-ricard.com/), an innovative interactive tool set up for real-time monitoring of the progress made and to share initiatives by country. Our actions are currently being evaluated by the IARD, which is working on a consolidated report covering five years of collective effort. This report is due out in late September 2018. Stakeholder feedback 3.3.1.4 We are not aware of any allegations against the Group in terms of its management of health and social problems caused by the consumption of its products. The Pernod Ricard Code for Commercial 3.3.2.1 Communications All advertising campaigns run by Pernod Ricard throughout the world must comply with the Code for Commercial Communications. This Code was adopted in 2007 and was updated in 2010, 2012 and 2013 to incorporate the use of new media (digital marketing) and provide more effective management of product innovations. Another review of articles on sexual success, motorsport, digital and sponsorship was carried out in 2015. The Code also introduced a new provision on the non-representation of stereotypes or degrading situations in our advertisements. The new Code can be accessed by all employees on the Pernod Ricard Intranet site and by all stakeholders on the Group’s website (www.pernod-ricard.com/en/our-commitments /public-affairs/, available in English, French and Spanish). The Code covers the following topics (full details are available in the Code), which apply to commercial communications (including new media) and product innovations: do not encourage alcohol abuse; ● do not produce communications that could be attractive to minors; ● Responsible communications 3.3.2

no drinking and driving; ● do not associate alcohol with hazardous/workplace activities; ● do not present alcohol consumption as having beneficial health ● aspects; do not show pregnant women consuming alcohol; ● do not use the level of alcohol as the main topic of promotion; ● do not link alcohol to physical performance and/or social success ● and/or sexual prowess. In addition, all of these topics must be taken into account when developing new products. Employee training in the Code 3.3.2.2 for Commercial Communications Pernod Ricard trains relevant employees in the Code for Commercial Communications. This training deals with the following issues: the importance of internal control of campaigns, the main provisions of the Code and the review procedure; particular attention is given to new media. At the end of each training session, an interactive training module allows the team to confirm their knowledge and understanding of the Code for Commercial Communications. In June 2014, Pernod Ricard released its new e-learning course related to the Code. This is a fun, interactive training course. Following the course, employees will have enhanced knowledge of Pernod Ricard’s Code for Commercial Communications. It tackles changes in alcohol advertising and presents the Code. This e-learning course is compulsory for all marketing staff and their agencies, and is open to all. After the training course, a quiz allows employees to test their knowledge and a certificate is awarded if they score over 80% in the test. Since the launch of e-learning, 1,798 people from the Group, mostly from the Marketing Department, have passed the e-learning module and received their certificate. Controls are mandatory for all the Strategic International Brands, Strategic Wine and Strategic Local Brands. Controls encompass advertising, the Internet and sponsorship. Since September 2013, the Panel reviews the compliance of all new products with the Code. Ethical control over advertising is the responsibility of the Responsible Marketing Panel (RMP), which comprises five members. Its decisions are binding throughout the Group and provide “case law” for the application of the Pernod Ricard Code for Commercial Communications. This Panel is required to provide its decisions within a maximum of seven days. Its decisions are taken in a collaborative manner. In the event of doubts pertaining to a campaign, the RMP has the right to seek advice from advertising regulators in the relevant markets. For example, in France the ARPP ( Autorité de régulation professionelle de la publicité – the French Advertising Standards Authority) is regularly consulted. The Panel provides formal opinions on every campaign submitted: approval of the campaign, approval subject to modification, or rejection, in which case a substitute campaign must be devised and submitted. The Responsible Marketing Panel 3.3.2.3 and results of controls in FY18

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018