PERNOD RICARD - 2018-2019 Universal registration document

3.

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

Participation in systems for the collection of packaging in support of recycling and reuse Most packaging waste produced by the Group’s activities is generated after final consumption of the products. The key issue is therefore to improve waste sorting solutions for consumers so that packaging can be recycled or reused. Pernod Ricard set up or joined several projects throughout the world to improve recycling or reuse of packaging: Europe: Group contribution of around €6 million to national schemes — aimed at improving the collection and recycling of domestic packaging, including glass; United States: joined the “Glass Recycling Coalition” to foster efficient — and economically viable recycling channels by involving all players in the chain (glass manufacturers, bottlers, recycling service providers, etc.);

Brazil: joined the “Glass is Good” project, whose purpose is to — increase the glass recycling rate by involving all sectorial players; India: deposit system to collect empty bottles in cafés, hotels and — restaurants and reused at production sites. Reduce waste 3.3.3.5 Limiting waste generated throughout the production chain and at the end of product life is an integral part of the Group’s circular economy approach. Pernod Ricard is committed to minimising waste disposal and maximising the recycling and reuse of its products. Pernod Ricard’s policy is focused on limiting food waste and eliminating landfill waste, ensuring all waste generated on industrial sites are recycled.

Policies

Objectives

Achievement in FY19

2020 Environmental Roadmap

Aim for zero waste to landfill at production level. —

953 tonnes of waste have been discarded in landfill — sites this year, which represents 200 tonnes increase vs. last year.

Limiting of foodwaste The Group implements measures to minimise food waste at every step of its value chain: upstream agriculture: to reducing food waste by reusing the — by-products from the production of certain foods, such as broken rice in India or sugarcane molasses in Cuba, to produce alcohol. Moreover, in developed countries, where most of the agricultural raw materials used by the Group come from, the quality of infrastructure associated with short supply routes prevent the products such as cereals from perishing. As for grapes, musts or wine, they are delivered directly to the Group’s wineries by producers, limiting losses in the supply chain; production sites: focus on recycling waste generated through the — transformation of raw agricultural materials (spent grains, vinasse and grape pomace): 99% of waste are recycled to manufacture animal feed, produce biogas, make farm compost or for other industrial purposes; consumer level: waste generated is very low since wine and spirits can — be kept for a long time, and the packaging is designed to last until the product is fully consumed.

Reducing waste and improving recycling on industrial sites The production sites generate mostly non-hazardous waste (99% of total waste) and some hazardous waste (1% of total waste): non-hazardous waste: packaging waste (glass, paper, cardboard and — plastics); waste arising from the transformation of farm raw materials that are not recovered as by-products (grape marc, stalks, sediment, etc.); waste produced by the site’s activities (sludge from treatment plants, office waste, green waste, etc.); hazardous waste: waste used for the sites’ operation (chemical — product containers, used oils, solvents, electrical and electronic waste, neon tubes, batteries, etc.). The Group’s ambition is to move towards zero landfill waste by 2020. To reach this goal, the affiliates will pursue their efforts to reduce the quantity of waste generated and identify recycling and recovery processes. Regarding hazardous waste that requires the use of a specific treatment process to prevent environmental risks, the Group will continue to identify appropriate treatment processes locally.

Key Performance Indicators

FY19 42,361 39,569

FY18-FY19

Global performance

Unit

FY18

Total quantity of waste  (1) Quantity of waste recycled Quantity of waste incinerated Quantity of waste to landfilled

t

37,242 35,729

+14% +11%

 t  t  t

765 748

1,838

+140%

953

+27%

% of solid waste recycled or recovered

%

96% 0.73

93% 0.91 482

-3%

Quantity of waste landfilled per litre of finished product Quantity of hazardous waste treated externally

g/L

+26%

t -5% It should be noted that this figure represents the volume of waste collected, but not necessarily the amount of waste generated throughout the year since, due to its small quantity, this waste is most often (1) stored on site for a certain amount of time. In addition, this waste may also be generated during ad hoc cleaning operations. For these reasons, this data item is not strictly speaking a performance indicator for the current year. 505

This year, some waste such as sludge and general waste were included in the reporting which led to a significant rise of total waste generated on production sites.

In addition, in Sweden, a part of non-conformed products could not be recycled and were incinerated, which increases significantly incinerated waste.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT