PERNOD RICARD - 2018-2019 Universal registration document

3.

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

Preserve water resources 3.3.3.3 Water is an essential component of the products manufactured by Pernod Ricard. From irrigating crop, to processing raw materials, distilling, blending eaux-de-vie and formulating products, water is used at every stage of the product’s life cycle, directly or indirectly. In this context, the Group faces several challenges: it must reduce water consumption, particularly in areas with hydric stress; preserve water quality by monitoring pollutants rejected by production sites and be fully compliant with evolving environmental laws. Pernod Ricard has been a member of the United Nations Chief Executive Officer Water Mandate since September 2010, reinforcing its commitment to the protection of the planet’s water resources.

Nitrogen and sulphur oxide emissions (NOx and SOx) contributing — indirectly to the greenhouse effect and environmental acidification. These compounds are produced by fossil fuel combustion. As emissions of these atmospheric pollutants for the alcoholic beverages sector are low compared to worldwide emissions, they appear to have no material impact for Pernod Ricard, and the Group does not consider it appropriate to monitor such emissions on an annual basis. However, the major distilleries ensure that they comply with the legal limits set for discharge of these pollutants.

Policies

Objectives

Achievements and next steps

2020 Environmental Roadmap

At production sites: reduction of water consumption by 20% per unit — produced between 2009/2010 and 2019/2020. 100% of sites located in high water risk areas have — implemented an action plan for managing water resources. Further reduction of water use tensity by 20% from — FY18 to FY30. For 100% of production sites located in — replenishment of the equivalent of 100% of water consumed by production sites in the same watershed. Exploring innovative ways to reuse organic waste. —

Water consumption has been reduced by -22% and — targets are therefore exceeded. 82% of the water use in high risk areas is covered by an — action plan for managing water resources. In FY20, production sites will identify water reduction — opportunities based on best available technologies per activities (distillation, wineries, bottling…) to define water use excellence target for each sites. In FY20, the Group will define methodologies to — quantify water associated with replenishment projects in order to support affiliates in establishing action plans. The Group will identify wastewater treatment — opportunities and engage research on innovative waste treatment solutions with the Paul Ricard Oceanographic Institute.

2030 S&R roadmap

Water consumption and performance ORIGINOF THEWATERCONSUMPTION FROM INDUSTRIAL SITES(M 3 )

DISTRIBUTIONOFWATERCONSUMPTIONBY ACTIVITY

1% Ageing

0%

Other items

23%

2%

Public network

Vini cation only

4%

Vini cation and bottling of wines

12% Bottling

30%

47%

River, lake or dam, other source

Ground water

81%

Distillation

To reduce direct water consumption at production sites, the Group focuses its efforts on two main drivers: setting up systems for measuring and monitoring water use and identifying measures to save, reuse and recycle water. This year, this led to a reduction of water use especially in distilleries which reduced water use per litre of pure alcohol produced by 2.7% compared to last year.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT