PERNOD RICARD - 2018-2019 Universal registration document

3. SUSTAINABILITY & RESPONSIBILITY Methodology note and third-party verification

Methodology note and third-party verification 3.6

Methodology note relating 3.6.1 to extra-financial reporting Period& scope of reporting 3.6.1.1 Reporting of corporate, environmental and societal data is performed annually and relates to the period from 1 July 2018 to 30 June 2019. Unless otherwise stated, this data relates to activities under the Group’s operational control. Scope of social reporting The social analyses in this report are based on all Group entities that have reported data on their employees for the period concerned. When a company joins the Group scope in the time concerned and is controlled by the Group, its corporate data is immediately included in full in the figures, regardless of the equity stake held by Pernod Ricard. At each financial year-end, the list of entities in the Group’s social reporting is compared to the one in the Financial Reporting to ensure its completeness. In FY19, reporting covers 135 entities. The consolidation scope and level of detail for corporate data have changed since FY19; indeed the social data are no longer reported by affiliate but by legal entity, which explains the increase in the number of entities covered. Also: in France, a specific entity, Lillet, dedicated to the brand, is now — reported under Ricard & Pernod; the CRPR (Pernod Ricard research centre) closed this year; in Europe, PR Andorra has been created; — in Latin America, the IT teams of Brazil, Mexico, Argentina and — Uruguay who used to have dedicated affiliates are now reported respectively under PR Brasil, PR Mexico, PR Argentina and PR Uruguay; PR Dominicana that used to be reported under Global Travel Retail is now under PR EMEA LATAM; in North America, the IT teams of the USA and Canada are now — reported under PR North America; two entities have been created following the Group’s latest acquisitions, the Foreign Affair Winery and Ungava Spirits; there was no change in Asia and in the Pacific in FY19. — The Asia-Pacific Region includes the Asia distribution network and the Group’s Wines business, which also includes Bodegas Tarsus and the Pernod Ricard Winemakers Spain affiliate, based in Spain, and the Pernod Ricard Winemakers Kenwood and Pernod Ricard Winemakers Mumm Napa affiliates, based in the United States. This year, the distinction has been made between the Brand Companies and the Market Companies for Australia and New Zealand resulting in two entities for each of those countries. Pernod Ricard’s African activities are managed by Pernod Ricard’s Europe, Middle East, Africa and Latin America Region and the related data are therefore included in the data for this Region. The social reporting indicators are selected to provide the Group with a reliable and accurate picture of its presence in the world. The data collected enables Pernod Ricard to be increasingly socially responsible in respect of its employees all over the world. Scope of societal reporting Indicators relating to responsible drinking are included in the social report. The indicators cover all Pernod Ricard affiliates (Brand Companies and Market Companies) which are required to include their societal information in the social report, with the exception of certain

entities. This is because the roll-out of the S&R strategy and the associated action plans are managed by a sole affiliate when several affiliates are situated in the same country. These entities do not have to give information to the Group’s reporting system. As regards the ethical monitoring of advertising by the Responsible Marketing Panel (RMP), controls are mandatory for all the Strategic International Brands and the Strategic Wine brands (which account for around 78% of advertising and promotion investments). Since February 2013, they have also been mandatory for Strategic Local Brands (which account for around 12% of advertising and promotion investments). Controls encompass advertising, the Internet and sponsorship. Since September 2013, the Panel has reviewed the Code’s compliance with all new products. Like all Group advertising, promotions must also comply with the Code. In cases of ethical issues, it is recommended that marketing teams Pernod Ricard’s environmental reporting relates to production sites and vineyards under the Group’s operational control on 30 June of the financial year in question and which have been in operation throughout the entire year. It does not cover administrative sites (head offices or sales offices), or logistics warehouses when these are located outside industrial sites (this relates to only a few isolated warehouses), since their environmental impacts are not significant compared to those located within industrial sites. The FY19 reporting covers: 89 manufacturing sites. This figure is lower than in 2017/2018 — following the disposal or closure of two production sites: Bessan in France and San Juan in Argentine. The industrial scope taken into account for this financial year therefore covers a production volume of 1,045 million litres (finished product either bottled or in bulk), compared with 1,030 million in 2017/2018, and a volume of distilled alcohol of 246 million litres in 2018/2019 compared to 233 million litres in 2017/2018. Comments on the results are provided in the different sections of the subsection “Protect the planet” in this document; 5,625 hectares of vineyards, located mainly in New Zealand, Australia, — France, Spain, the United States, Argentina and China. Key results related to vineyards are set out in subsection “Sustainable agriculture and performance of our vineyards”. Clarification relating to indicators 3.6.1.2 Social indicators Age and seniority are calculated based on staff on permanent contracts. Average headcount is calculated on a full-time equivalent basis, without taking into account long- and short-term absences. Since FY19, employees are included in the headcount of the legal entity that appears on their employment contracts; expatriates and seconded employees are included in the headcount of their host affiliates. Pernod Ricard China employees are accounted for as staff on permanent contracts. Chinese employment contracts actually comprise a statutory duration and are only converted into permanent contracts after a number of years. However, given the specific characteristics of employment legislation in China, Pernod Ricard considers its employees to be staff on permanent contracts. Due to the particular characteristics of local labour laws, as of last year the same rule applies to Pernod Ricard Minsk employees, as the concept of a fixed-term contract does not exist in Belarus. submit their proposed promotions to the Panel. Scope of environmental reporting

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT