PERNOD RICARD - 2018-2019 Universal registration document

3.

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

Watermanagement tailored tomeet local challenges Because water resources are unevenly distributed, risk level vary depending on the location of the Group’s production sites. To better understand and identify priorities, Pernod Ricard has categorised its production sites as high risks, significant risks and low risks, using the Overall Water Risk Index. For each category of risk, a specific water management strategy is applied:

Along the value chain, the drip irrigation technique is used for 100% of the vineyards operated by the Group, reducing the water used to what is strictly necessary. Moreover, given the predominance of the supply of agricultural raw materials in the Pernod Ricard’s water footprint  (1) , the Group works at local level with the affiliates’ suppliers to establish sustainable agriculture standards that minimise water consumption (see subsection 3.3.1.2 “Promote and develop resilient agricultural supply chains”).

Area’s risk level

Pernod Ricard situation

Water management strategy

High risks

6 sites, in India, Argentina and Australia. — 3.4% of the Group’s total water consumption. —

Sites must take specific actions with local communities and other stakeholders to contribute to improving the local water management plan. Site must perform studies of their water catchment areas to ensure there is a balance, monitor any change in risk, and maintain a dialogue with the main stakeholders. Sites must at a minimummanage water resources efficiently on their premises.

Significant risks

10 sites, located in India, USA, China, Armenia, and — Mexico. 7% of the Group’s total water consumption. —

Low risk

73 sites. — 90% of the Group’s total water consumption. —

To date, the Indian, Australian and Armenian sites have defined a water management strategy and are at the action implementation phase. Treatment of waste water To reduce the pollutants released into the natural environment and make sure that the water discharge by production sites does not damage surrounding ecosystems or other natural resources, production sites are

fitted with different technologies such as aerobic, anaerobic treatments, filtration, etc., according to the waste water quality requirements. The Group will also explore innovative projects for treating these waste water. FY19, 76% of waste water was discharged into a public sewer system, 18% was discharged into the environment following treatment, and 6% was recycled for vineyard irrigation.

FY19

Global performance

Unit

FY10

FY18

Total volume of water used

7,095,145

6,726,120 25,913,313 4,390,900

6,921,074 25,238,963 4,359,797

Total volume of water abstracted Total volume of waste water released

28,052,000 5,445,849

m ³

Water consumption per unit produced at production sites

36.3

28.9 926

28.1 929

m ³ / kl PA

Chemical oxygen demand (COD) released into the natural environment (t)

t

-

Circular packaging and distribution 3.3.3.4 The impact of the Group’s activities on the environment begins with the design of the products and packaging and continues throughout their life cycle. The product and packaging development phases represent a key lever to reduce the Group’s environmental footprint: packaging accounts for 36% of the Group’s carbon footprint (see subsection 3.3.3.2). For this reason, Pernod Ricard adopts a full life cycle view, by implementing eco-design principles when developing new products, and participating in local packaging’s collection and recycling schemes, in

order to reduce its overall environmental footprint and minimise end waste. In 2017, the Group made a commitment to the French Association of Private Enterprises (Association Française des Entreprises Privées – AFEP) to take concrete measures to address circular economy alongside 32 other companies. It also joined the New Plastic Economy and is a member of the CE100 network from the Ellen MacArthur Foundation.

Analysis of the Group’s water footprint indicates that by far the most water-intensive activity in the value chain is the supply of agricultural raw materials, representing 99% of the Group’s (1) water consumption. In comparison, the direct water consumption of production sites represents less than 1% of the Group’s water consumption.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT