PERNOD RICARD - 2018-2019 Universal registration document

3.

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

The four pillars of the Good Times 3.3 froma Good Place roadmap

Nurturing Terroir

3.3.1

Terroir means earth or soil in French, the birthplace from which all of Pernod Ricard's products take their characters. Across its business, the Group sources its natural ingredients from over 285,000 hectares of land: Europe (grain, grapes), Asia (grain, aromatic plants), the Americas (sugar cane, grain, agave) and Oceania (grapes). Pernod Ricard is therefore committed to nurturing every terroir and its biodiversity, responding to the challenges of climate change to ensure quality ingredients now and for generations to come. The Group is proud that its brands are deeply rooted in their countries of origin and play an important role in

Pernod Ricard is committed to developing and promoting environmentally friendly farming practices, both through its own farming and in the agricultural product supply chains: reducing the use of fertilisers; — using crop protection products that are less harmful to the — environment; reducing water consumption, using drip irrigation techniques where — possible; preserving soil and biodiversity; — training and knowledge sharing on sustainable agriculture and — practices with farmers. Improve sustainability performance 3.3.1.1 and develop regenerative agriculture in the Group’s vineyards Pernod Ricard’s ambition is to become a leader in sustainable and regenerative agriculture  (1) within the wine industry and be exemplary in the sustainable performance of its vineyards. The vineyards run directly by the Group cover 5,625 hectares in seven main countries: New Zealand (45%), Australia (24%), Argentina (9%), France (13%), Spain (5%), China (2%) and the United States (2%).

the local communities where they are created. In FY19, a total of around 2.6 million tonnes of agricultural raw materials was used from: the Group’s vineyards and farms (67,936 tonnes), direct purchases of raw agricultural products (430,763 tonnes), or purchases of processed products such as sugar and alcohol (2,101,550 tonnes). AGRICULTURAL LANDCORRESPONDINGTORAWMATERIALS USED IN FY19 (HECTARES)

4,005 Aromatic plants

2,156 Agave 1,905 Beet 817 Potatoes

8,718 Sugar cane

20,465

Maize

27,053

Wheat

40,798 Malted cereals

131,487 Various cereals

47,683

Vines

Policies

Objectives

Achievements

2020 Environmental Roadmap

100% of the vineyards operated by the Group are certified according to environmental standards 100% of our vineyards drip irrigated By 2025, pilot local models for regenerative farming systems in the Group’s vineyards in eight wine regions, capturing more carbon in soils, and share with the wine industry

99% of the vineyards are now certified. 100% of our vineyards are fitted with drip irrigation system Pernod Ricard will develop regenerative agricultural models for vineyards that could later be shared with the wine industry

2030 S&RRoadmap

To address its new ambitions for 2030, Pernod Ricard will start by defining Group Sustainable Agricultural Principles. Opportunities for regenerative agriculture experimentation and collaboration with academic partners to test innovative agriculture techniques and practices will also be explored.

Regenerative agriculture refers to a system of farming principles and practices that increase biodiversity, enriches soils, improves drainiage basins watersheds, captures carbon in soil and (1) enhances ecosystem services. Over the long term, it leads to increased yields, resilience to climate instability, and higher health and vitality for farming communities.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT