PERNOD RICARD - 2018-2019 Universal registration document

3.

SUSTAINABILITY & RESPONSIBILITY The four pillars of the Good Times from a Good Place roadmap

Policies

Objectives

Achievements

2020 Environmental Roadmap

100% 63%

100% of the Brand Companies have conducted an assessment — of their long-term environmental risks. 100% of the Group’s employees at administrative sites work in — offices conforming to the internal Green Office guidelines.

Climate change: reduction

Pernod Ricard deploys environmental management systems to address environmental priorities and implement tangible actions, throughout business activities. Environmental management systems are implemented based on the following principles: the Headquarters’ Sustainable Performance Division oversees and — coordinates measures at Group level by setting shared objectives, monitoring the performance, circulating guidelines that include minimum requirements and sharing best practices. Each Brand Company is required to evaluate its performance against these requirements annually and, when necessary, to implement compliance action plans; Pernod Ricard’s activities, both for the Brand Companies and the — Market Companies, are required to comply with the environmental requirements outlined in the Group environmental guidelines: affiliates are accountable for complying with local legal — requirements, and report to the Headquarters any incidents or noncompliance occurring in their affiliate, affiliates are accountable for assessing their long-term risks, — identifying and determining ways to reduce their own environmental impact and apply the Group’s policy locally, major production sites are required to be certified in accordance — with ISO 14001. In 2018/2019, 95.5% of production sites were certified according to the ISO 14001 standards which cover 99.9% of production, Group employees and administrative sites are required to meet the — requirements detailed in the “Green Office” guidelines. This year, one environmental incident was reported to local authorities, one administrative non-compliance was found, and 18 complaints were received from third parties. This includes all types of potential impact that a manufacturing site may have, in particular odours and noise. The events are described below: a minor hydrocarbon spillage in a waterway in Scotland; — a notification relating to a boiler from the local authorities following — inspection at our Italian production site; nine noise complaints in Ireland, Australia and New Zealand and nine — odour complaints in Scotland and France. A root cause analysis was conducted for all these events and action plans drawn to implement corrective actions. As of 30 June 2019, no provisions have been made for environmental risks. Some affiliates had to provide guarantees when applying for operating permits from the authorities. These do not correspond to specific amounts but ensure the affiliates’ solvency to deal with any consequences of pollution or any other environmental accident.

3.3.3.2

and adaptation Towards alignment with TCFD recommendations Climate change is one of the greatest challenges of our generation, calling for urgent action. Combatting climate change is a major focus of Pernod Ricard’s environmental policy: the Group intends to reduce the CO 2 equivalent emissions generated along its supply chain and adapt its business to ensure it is resilient. For greater transparency, Pernod Ricard follows the recommendation of the Task Force on Climate-related Financial Disclosure (TCFD). Governance Pernod Ricard has a dedicated governance and organisational structure to ensure that climate change issues are fully integrated into its strategy. It is within this vein that the Sustainability & Responsibility Senior Steering Committee (S&R Senior Steering Committee), chaired by Pernod Ricard’s Chairman and CEO, was created. Pernod Ricard also has a dedicated Sustainable Performance team at HQ, in charge of implementing its climate change strategy. Board supervision: the Board of Directors evaluates Pernod Ricard’s S&R commitments’ relevance and ensures that climate-related issues are incorporated into the Group’ strategy through two annual meetings. The Board relies on Pernod Ricard’s Operations Department to carry out the integration of climate-related issues into the Group’s three-year strategic plans and budgets, in compliance with its strategic orientations. The Executive Committee, which meets twice a year on S&R topics, prepares, examines and approves all decisions relating to sustainability and climate change and submits its decisions to the Board of Directors. The Committee is also in charge of reviewing climate change risks and opportunities assessed by the S&R Department and HQ experts. Role of management: the S&R Senior Steering Committee shapes Pernod Ricard approach to climate change, while the S&R HQ Team ensures that strategy is effectively embedded into processes and practices. The S&R Senior Steering Committed, considered as a Top Management’s governance body is composed of nine members, representing all the Group’s functions at the highest level: CEO, Managing Director GBD, EVP Human Resources & Sustainability & Responsibility, EVP Finance, IT and Operations, Group VP Sustainability & Responsibility, VP Global Government Affairs, Group Operations Director, Global Marketing & Commercial Director and Group Communication Director. The Committee assesses and manages climate-related risks and opportunities. It sets actions plans and supervises the implementation of the strategy by the operations and the Global Business Development functions.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT