PERNOD RICARD - 2018-2019 Universal registration document

3. SUSTAINABILITY & RESPONSIBILITY The main sustainaibility risks and opportunities

A robust Governance structure 3.1.2 The Sustainability & Responsibility strategy will be implemented throughout the Group with the following Governance structure:

MonitorsprogressoftheS&Rstrategy,validatesprogressandreportstothewiderBoard. 2meetingsperyeartotheS&R,Nominations,GovernanceandCSRCommittee 1reportperyeartothe fullBoard

BOARD OF DIRECTORS

Accountable forthecompany’sperformance inrelationstothegoalssetwithintheS&Rstrategy. Inclusion into3yearstrategicplans/updates inat least2COMEXmeetingsperyear

COMEX

9members:CEO,ManagingDirectorGBD,EVPHumanResources&Sustainability,EVPFinance,ITand Operations,VPGroupeSustainability&Responsibility,VPGlobalGovernmentA airs,GroupOperations Director,GlobalMarketing&CommercialDirectorandGroupCommunicationDirector Meets2timesperyearandreportsbacktoCOMEX2timesperyear

•

S&R SENIOR STEERING COMMITTEE

Drivethe implementationoftheS&Rstrategy inacoordinatedmanner,reportprogresstotheS&Rteam,andsupporttheS&RSeniorSteerCo. Dedicatedtask forceswhenrelevantto leadthe implementationoftheS&Rstrategyonspeci ctopics,andsupportthe4S&RPillarSteerCoonspeci ctopicsandgoals. Composedofteamsattheoperational level, involvingexperts fromMarketCos,BrandCosandRegions invitedtoparticipatebyHQFunctions inchargeofcommitments ISSUE TASKFORCES HQ FUNCTIONS TOP MANAGEMENT People HUMAN RESOURCES OPERATIONS OPERATIONS Terroir Making OPERATIONS GBD Hosting GOVERNMENT AFFAIRS S&R • EmpowerHQ functionstobecomeacenterofexpertise fora liates EnsureS&Rstrategy isembedded intoprocessesandpractices • •

Themain sustainaibility risks and opportunities 3.2

Within the context of the 2014/95/EU Directive on the disclosure of extra-financial information, as indicated in French law (article R. 225-105 of the French Commercial Code), Pernod Ricard is required to publish an “Extra-Financial Statement” (namely DPEF – déclaration de performance extra-financière ). This Statement requires the Group to publish its business model and information on key extra-financial risks in relation to environmental, social, societal, Human Rights, tax evasion [pursuant to law no. 2018-898 on fighting fraud] and corruption issues. For more information on Pernod Ricard’s business model, please refer to Section 1 “Extracts from the integrated annual report” and for more information on the Group’s key extra-financial risks, please refer to subsections 3.2.1 and 3.2.2 below.

process for identifying them are described in Section 4 of this document; these sustainability risks were the subject of further analysis and — development through research and internal and external stakeholder expectations and engagement when developing the 2030 Sustainability & Responsibility strategy (see subsection 3.1.1.2 “Addressing stakeholder expectations across the entire business, from grain to glass”); led by the Sustainability & Responsibility Department, other key HQ — experts ranging from operations to legal, to human resources, to public affairs, to finance were also involved via a dedicated workshop to validate and, when relevant, redefine the top eight risks and opportunities; the resulting eight extra-financial risks and opportunities were — subsequently presented to and validated by the Executive Board. and opportunities identified The definitions of the eight main risks and opportunities are indicated in the table below. Targets, policies, due diligence procedures, and key performance or means indicators are presented in detail in subsections 3.3 “The four pillars of the Good Times from a Good Place Roadmap” and 3.4 “Ethics and compliance”. In the interest of transparency, other indicators have been presented alongside the deployed policies, depending on the issues addressed. The eight risks 3.2.2

Presentation

3.2.1

of themethodology Pernod Ricard adopted the following methodology:

the Group’s risk mapping served as a reference point when identifying — the main extra-financial risks for the “Extra-Financial Statement”. Every three years, the main risks facing Pernod Ricard are mapped by affiliate and function and then consolidated at HQ level by the Group’s Risk Management Department. Updated in 2018, the Group’s risk mapping presents and classifies the risks according to their potential impact and occurrence in all areas of the Group’s activities. Some of these risks are specific to sustainability issues. The Group’s significant risks and the

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PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT