PERNOD RICARD - 2018-2019 Universal registration document

3.

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

Climate-related risks and horizon Chronic Long-termrisk:

Area of business impacted

Potential financial impact andmagnitude of impact

Impact on the Group’ strategy and financial planning

Type

Physical risks

Supply chain &Operations

High impact: This risk could lead to the loss — of a strategic industrial site. The impact could result in a significant operating loss and therefore a sharp drop or prolonged shutdown of the supply of certain products no longer allowing the Group to meet consumer demand. Low impact: Efficiency programmes can — reduce operational costs and

Implementation of preventive — measures and physical protection devices; audit of industrial sites in cooperation with insurer; establishment of business continuity management systems. Climate change is an — important part of one of the key pillars of the Group’s S&R roadmap; the Group will continue to roll out energy efficiency programmes (see subsection 3.3.3.2). The operational cost reduction is considered in financial planning. This factor is considered in the — Group’s marketing strategy and environmental roadmap, with a focus on sustainable

The Group and its suppliers’ — facilities are exposed to a risk of natural disasters (fire, hurricanes, flooding etc.).

Resource efficiency

Short-termrisk: Pernod Ricard’s exposure to — future energy and tax regulations accelerate the implementation of energy efficiency programs within its operational sites as well as in its supply chain. Long-termopportunity: Developing quality products — that respect the environment might encourage consumers, whose expectations in terms of sustainable consumption are growing rapidly, to choose Pernod Ricard’s products. Short-termopportunity: The increase demand for — lower emissions products and services and the integration of sustainability concerns are

Supply chain &Operations

provide the Group with a competitive advantage.

Market

Products

Medium impact: The Group estimated that it — could lead to an increase of market share.

agriculture practices and eco-design practices (see Sections 3.3.1.1, 3.3.3.4).

Product and services

Product &Services High impact:

Innovation and digital are — considered as strategic priorities; different entities are working on innovative projects.

This will generate new product — and service offers. The Group estimated that it could lead to an increase of market share.

strong drivers to foster innovation and increase market share.

Adaptation of the production facilities to lower carbon technologies is likely to require capital expenditure. No climate-related risk is supposed to significantly impact the following areas: acquisitions or divestments and access to capital.

Riskmanagement The identification of climate-related risks and opportunities takes place during the global risk mapping of the Group and the mapping of environmental risks: the global risk mapping, based on local business risks identified by — Group affiliates and functional risks identified by the Group’s functions, is updated every two to three years by the internal audit team. This team reports to the Chairman and CEO presents its results to the Executive Committee and the Audit Committee. Monitoring of Group’s major risks is performed annually;

Resilience of the organisation Pernod Ricard expects to implement climate-related scenario analysis in the next couple of years. This year, the Group submitted a greenhouse gas emission reduction target to the Science-Based Targets (SBT) initiative. In June 2019, the SBT initiative approved our targets, which are aligned with a below 2°C scenario for our Scope 1 and 2 emissions and the 2°C scenario for the Scope 3 emissions.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT