PERNOD RICARD - 2018-2019 Universal registration document

3.

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

Waste to landfill also rose from 748 to 953 tonnes for two main reasons: disruption of composting company treating organic sludges in New Zealand and saturation of incineration centres in France. An action plan will be set to achieve our zero waste to landfill ambition next year. Despite this abnormal situation, 93% of waste is recycled. Product quality and safety 3.3.3.6 Pernod Ricard aims to provide its customers with products of the highest quality, and places particular importance on consumer health and safety. This has resulted in a significant commitment in terms of the prevention of risks associated with alcohol abuse, but also a strict policy in terms of food safety during product preparation. The control of product health and safety is based on the implementation of the hazard analysis critical control point (HACCP) method which aims to identify all the points for potential risks in the manufacturing process and to control these with appropriate preventive measures. Brand Companies that are producing Group’s strategic brands are certified ISO 9001 representing 99.9% alcohol produced. In addition, and despite the fact that Wines & Spirits are less exposed to food safety risks than the products of other food industry segments, Pernod Ricard decided also to proceed with the gradual certification of its facilities in accordance with ISO 22000, “Food safety management systems”. Quality internal standards are established by Pernod Ricard for its industrial activities including different specific guidelines, the aim being to control risks such as the accidental contamination of a product or the presence of a foreign body in a bottle. These standards are audited according to an internal cross-audit process. An absolute priority for the Group is to ensure its products comply with the regulations that apply to each of its various markets.

In addition, a Group Intranet site called “Complaint Management System” is used to record and track consumer complaints and any other quality issues in real time and to immediately inform the affiliate concerned so that corrective action can be taken. In the case of a serious product safety concern, the system also informs Headquarters instantly, allowing for rapid response. Each affiliate has a crisis management procedure that can be activated particularly in the case of a health risk caused by a product with, if necessary, a product recall. These procedures are subject to regular testing, training for people involved and updates. Quality indicators including the number of complaints rate are presented to the Senior Management. Furthermore, a health risk management Committee chaired by the Group’s Operations Director ensures the monitoring of risks linked to product health safety and in particular emerging risks linked to scientific knowledge or new regulations. The Committee relies notably upon on a regulatory watch and an annual Group chemical analysis plan, which in 2018 covered 74 finished products with a total of over 3,800 analyses completed. To our knowledge, the Group’s products do not contain nano-ingredients. In addition, the Group is committed to ensuring complete traceability of its products in terms of GMOs (genetically modified organisms) to assure consumers that the labelling regulations for products containing GMOs are strictly complied with. Accordingly, all affiliates conduct a risk assessment to identify potential sources of raw materials, taking the necessary measures to ensure control of these sources. Although the distillation stage removes the risk that GMO material may be present in the distilled products, supply chains for products that are guaranteed GMO-free have been established for certain corn-based alcohols in the United States and Europe.

FY19

FY18 78% 99%

% of sites ISO 22000 certified by June of the fiscal year

81%

% ISO 22000 certified in volume produced covering all the Group’s strategic brands % Brand Companies that are producing Group’s strategic brands are certified ISO 9001 representing 99.9% alcohol produced Number of complaints received through the “Complaint Management System” during the fiscal year

99.8%

99.5% 4,500

100% 3,800

Responsible Hosting 3.3.4

Fight alcohol misuse 3.3.4.1 Pernod Ricard is committed to reducing the alcohol misuse and promoting moderate drinking. This goal is fully aligned with its vision of “ Créateurs de convivialité ” as there is no conviviality in excessive or inappropriate drinking. It is also aligned with its Premiumisation strategy: the Group wants its consumers to consume better and high-quality products, not more. Pernod Ricard believes that targeted action on the ground is an effective way to tackle inappropriate consumption. The Group has more than 100 programmes and campaigns worldwide to fight alcohol misuse, often working with its peers and external partners, with a focus on prevention of underage drinking, drink driving and pregnancy drinking, and promoting moderate and responsible consumption of alcohol.

Pernod Ricard believes that its products bring people together and serve a valuable role in society. However, the Group also acknowledges that alcohol can be misused, and that inappropriate consumption of alcohol can cause serious problems to individuals and communities. The Group believes that it has a role to play to prevent and reduce harmful use of alcohol. Pernod Ricard fights alcohol misuse in society by taking action on harmful drinking – engaging with its stakeholders for real change and continuously developing and strengthening its responsible marketing practices.

Addressing alcohol abuse cannot be achieved by Pernod Ricard alone, and partnerships with other industry members, governments and local communities are necessary for success. Positive change can only be reached in unison with others, with one collective voice.

109

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT