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

Other examples: Domecq Bodegas has been working with the Guggenheim Museum in Bilbao for 10 years; in the United States, Pernod Ricard is linked with New York’s New Museum and in England, with the Saatchi Gallery. In Berlin, MADE by Absolut is a versatile creative platform that promotes innovative interdisciplinary projects. In Paris, Pernod Ricard is also joining forces with Villa Vassilieff to create the Pernod Ricard Fellowship, a grant aimed at supporting four international artists, curators and or researchers in residence every year. Encourage our partners to respect 3.4.1.4 sustainable development principles Pernod Ricard has sustainable relationships with its suppliers and subcontractors, and relies upon them to convey its values and share its S&R commitments. These commitments apply throughout the Group and are supported by General Management. Each affiliate selects and monitors its own suppliers and subcontractors and is therefore responsible for its Procurement policy. A process was implemented within the Group, called Blue Source , to allow affiliates of Pernod Ricard to deploy the strategy of responsible purchasing locally. These documents and tools form part of the following iterative process: Since 2011, the Responsible Procurement Policy for products and ● services, covering all purchases made by the entire workforce. It is available on Pernod Ricard's Intranet in English, French, Spanish, Portuguese and Mandarin. Supplier CSR Commitment , launched in October 2013, to be signed ● by suppliers of Pernod Ricard. The ultimate aim of this document is to raise our suppliers’ awareness of the following topics: Working and Human Rights, Health and Safety, Environmental Management, Ethics and Fair Commercial Practices, and Responsible Drinking. It is available in English, French, Spanish, Portuguese, Mandarin, Russian, Finnish and Armenian.

At the end of June 2018, following the use of the risk mapping tool, 465 suppliers, identified as high-risk, had been assessed or re-assessed using EcoVadis. To date, we have carried out 1,022 EcoVadis assessments since 2012. 63% of our suppliers and subcontractors saw their assessment score increase. S&R audits of suppliers and subcontractors. Pernod Ricard chose ● the SMETA (Sedex Members Ethical Trade Audit) standards for this, which means that it is in line with the AIM Progress “Mutual Recognition” programme. Furthermore, AIM Progress and EcoVadis have formed a partnership whereby they share assessments among AIM-Progress members. Pernod Ricard actively participated in drafting this initiative. At the end of June 2018, 130 S&R audits of suppliers had been completed, mostly in Asia for the point of sale material (POS) category. These audits will be rolled out to more affiliates in the coming months. During FY19, in the interests of continuous improvement, the Blue Source process will be reviewed and digitised to allow better monitoring. The actions taken by the Group to ensure that relationships with suppliers and subcontractors are managed responsibly include the following: the fact that Headquarters has close relationships with around 20 of ● its top suppliers, representing 65% of the packaging expenditure. These relationships are regularly examined from a commercial standpoint. Furthermore, in all the Group’s affiliates, partnerships are formed on the basis of detailed specifications and regular monitoring. The introduction of the Self-Assessment Checklist (SAC) with 100 or so criteria, around 20 of which cover Corporate Social Responsibility. This tool is used to monitor the main suppliers and to approve new suppliers. This tool was also used in bid processes; the implementation of digital training in Smart and Safe POS ● purchasing, linked to the CSR risks inherent in the development and purchase of point-of-sale (POS) material. This training provision is intended for Marketing and Communication staff who may develop and purchase POS materials; the Pernod Ricard Procurement Code of Ethics , in line with the Code ● of Business Conduct, establishes rules for balanced and healthy relationships with suppliers as well as the basic CSR principles. This Code, the latest version dated from 2015, is shared with the departments concerned and is available in French, English, Spanish and Portuguese; the CSR model clauses, which were updated in 2015, are available in ● French, English, Mandarin, Spanish and Portuguese. These clauses are for use both in contracts and Standard Terms and Conditions of Purchase. No allegations have been made against Pernod Ricard regarding the sustainability of its partnerships with its suppliers and subcontractors. Create value and share it with our 3.4.1.5 partners and shareholders The relationship between the Group and its shareholders is based on trust, dialogue and transparency.

At the end of June 2018, 1,693 signed CSR commitments had been uploaded to the Pernod Ricard Intranet site.

CSR Risk Mapping Tool, implemented since 2013, to allow affiliates to ● identify which suppliers and subcontractors which should be assessed as a priority. The supplier or subcontractor is evaluated by the affiliate working directly with it, using a matrix of various responses: production or service company, size of the company, presence in a country deemed to be risky, turnover, dependence of the supplier on the affiliate, annual expenditure, critical nature of the product, social, environmental and supply chain risks of the supplier.

At the end of June 2018, 2,483 supplier analyses had been carried out using this tool.

S&R Assessment of suppliers and subcontractors using the EcoVadis ● platform. The Group has chosen to carry out the evaluation of its suppliers via the EcoVadis platform, which specialises in this field. The questions are based on four major topics: the environment, social, ethics and supply chain. In the context of Blue Source, Pernod Ricard recommends that its suppliers be re-evaluated every two years to allow them to jointly work on an action plan and to improve their areas for development.

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