PERNOD RICARD - 2018-2019 Universal registration document

3. SUSTAINABILITY & RESPONSIBILITY The main sustainaibility risks and opportunities

Given the nature of our activities, we consider that “tax evasion” mentioned in article L. 225-102-1 of French Commercial Code does not constitute a major extra-financial risk for the Group and does not warrant development in this “Extra Financial Statement”. Nevertheless, “tax evasion” is taken into account in subsection 3.4.1.4 “Tax policy”.

Risk/opportunity

Sub-risk/opportunity Human Rights & working conditions Environmental impacts

Definition

Subsections of Section 3

3.3.2. Valuing People 3.3.2.5 Responsible Supply Chain 3.3.2.4 Human Rights

Responsible supply chain

Risks: Pernod Ricard may be legally involved with suppliers whose practices do not comply with Human Rights or environmental standards (child labour, forced/bonded labour, health and safety, toxic emissions etc.) leading to Human Rights violations and reputational damage. Risks: agricultural practices in Pernod Ricard’s supply chain may have various negative impacts on the environment (reduction of water availability, generation of CO 2 emissions, harm on biodiversity). Moreover, climate change could alter crop quality, areas of production, and volumes produced.

3.3.1. Nurturing Terroir 3.3.1.2 Promote and develop resilient agricultural supply chains

Sustainable agricultural supply chain

3.4. Ethics&Compliance 3.4.1.2 Prevention of corruption and anti-competitive practices 3.4.1.3 Transparency and integrity of strategies and influencing practices 3.4. Ethics&Compliance 3.4.1.1 Data privacy

Compliance

Corruption&antitrust Risks: given the international scope of the Group’s activities, Pernod Ricard may violate anti-corruption

laws and other similar regulations, in its own operations or along its supply chain, leading to reputational damage and financial penalty.

Data privacy protection Risks: considering the digital transformation of its activities, Pernod Ricard might infringe on the legal provisions on data privacy (GDPR, General Data Protection Regulation) and fail to protect the personal data of its consumers, leading to reputational damage and financial penalty.

3.3.2 Valuing People 3.3.2.1 Talent management

People development &Safety

Talent management

Risks: due to insufficient career development management or a non-attractive compensation policy, Pernod Ricard may have difficulties to attract and retain the competencies needed for its activities, leading to business difficulties and a deterioration in its financial results. Opportunities: 94% of turnover is generated internationally, and a growing number of consumers are women. Developing markets are the clear majority of the global human population and women are half of the population. They are customer groups and talent pools that cannot be neglected. Pernod Ricard builds on this diversity and promotes it, to increase innovation, business adaptation and opportunity. Risks: Pernod Ricard’s employees and contractors’ health and safety may be exposed to occupational injuries (burns, physical traumas, falls, toxic inhalation, etc.), major industrial accidents (fires, explosions, etc.) or natural disasters.

3.3.2 Valuing People 3.3.2.2 Diversity 3.3.2.4 Human Rights

Diversity

3.3.2 Valuing People 3.3.2.3 Working conditions and health & safety

Working conditions and Health&Safety at work

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT