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SUSTAINABILITY & RESPONSIBILITY (S&R) DEVELOP COMMUNITIES AND INVOLVE OUR PARTNERS

DEVELOP COMMUNITIES AND INVOLVE 3.4 OUR PARTNERS

also, the Group strives to improve health and social conditions by ● funding social projects and organising volunteering programmes. In India, for example, Pernod Ricard helps set up clinics providing free medical services, delivering prevention programmes at the same time. Promote entrepreneurship 3.4.1.2 A core Group value, entrepreneurship is also considered a driver of local economic development. There are two aspects to the Group’s action: encouraging the younger generation to set up businesses, and supporting the creation of local businesses and helping to improve their effectiveness. Examples of this include: Chivas Brothers supports young people from the local communities ● surrounding its production sites in developing their business skills; Group Pernod Ricard’s continuing commitment to Positive Planet, an ● association for the development of microcredit, through the development of six new agricultural cooperatives, mainly in the Tavush region of Armenia. This initiative follows the success of a pilot cooperative and aims to provide small farms with the equipment and training required to enable families to live in dignity from their agricultural activities; on Responsib’All Day 2018, all Group employees actively participated ● in local community initiatives. As water and biodiversity are fundamental aspects in Pernod Ricard’s business, the eighth Responsib’All Day focused on two of the United Nations Sustainable Development Goals (SDGs): SDG 15 (“Life on Land”) and SDG 6 (“Clean Water and Sanitation”). A total of more than 100 projects were undertaken in just one day. Share the diversity of local cultures 3.4.1.3 Pernod Ricard’s commitment to all forms of art and, in particular, contemporary art, is the result of a long tradition of partnering the arts. Pernod Ricard strives to promote worldwide the culture of the countries in which it operates, sharing their traditions, art and lifestyles in order to encourage entrepreneurship, open-mindedness and respect. Moreover, Pernod Ricard is committed to promoting and showcasing art by supporting young artists. Paul Ricard, passionate about painting and a painter himself, had already created a foundation to support young artists in the 1960s. Since then, the Prix de la Fondation d’Entreprise Ricard has been created, rewarding one of the most representative young artists of his/her generation. Each year, the Foundation buys one of the winning artist’s works and donates it to the Pompidou Centre in Paris.

Due to the diversity of its brands and its decentralised model, Pernod Ricard is deeply rooted in local communities. Pernod Ricard is committed to sharing the value generated by the development of its activities with local communities and its partners, in order to build long-lasting relationships that benefit everyone. The Group conducts its activities in a fair, transparent and honest manner. This commitment is based on five main actions: contribute to the development of local communities; ● promote the spirit of entrepreneurship, a source of value creation ● and wealth; share the diversity of local cultures; ● encourage our partners to respect sustainable development ● principles; create value and share it with our partners and shareholders. ● In FY18, 96% of affiliates had at least one initiative to promote the development of local communities and the engagement of partners. The Pernod Ricard Charter and Pernod Ricard’s Sustainable Development Commitments outline the promotion of local social and economic development. Pernod Ricard’s worldwide affiliates: provide employment in local economies, especially in agriculture, ● through the production and purchase of raw and processed agricultural products corresponding to around 2.6 million tonnes of equivalent raw agricultural products per year (around €968 million per year); develop the skills of their employees and provide them with fair, just ● and motivating compensation; add value to the goods and services purchased from suppliers and ● partners; generate revenue for governments through taxes, duties and ● royalties, particularly those related to its brands, as well as for its shareholders and investors. The Chief Executive Officer of each affiliate is responsible for implementing this policy. Community involvement 3.4.1 Contribution to the development 3.4.1.1 of local communities The Group commits to help local communities to benefit from its growth: by supporting economic development through training programmes, ● support for access to education or job creation. For example, in New Zealand, a training programme for jobs within the wine trade was set up with the Ministry of Development and NMIT (Nelson Marlborough Institute of Technology), while in Ireland, Irish Distillers funds a grant for two students at the University of Dublin;

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018