PERNOD RICARD - 2018-2019 Universal registration document

3.

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

Promote and develop resilient agricultural supply chains

3.3.1.2 Pernod Ricard's business is dependent on agriculture and the Group commits to implementing resilient agricultural practices in partnership with suppliers to adopt practices that respect the land and neighbouring ecosystems. More specifically, Pernod Ricard will:

support suppliers in sustainably increasing agricultural productivity — and production; adapt and build resilience to climate change while reducing — greenhouse gas emissions; help maintain ecosystems progressively improving land and soil — quality.

Policies

Objectives

Achievements

2030 S&RRoadmap

100% of our terroirs mapped and risk-assessed

In FY20, the methodology for the mapping and the risk assessment will be defined and the procurement teamwill be trained in this methodology In FY21, preferred standard for each crop commodity will be selected and standards will be introduced in sourcing requirements

100% of key rawmaterials  (1) sourced certified according to selected sustainability standards

100% of key rawmaterials (1) covered by projects addressing pressing sustainability issues (water, agrochemicals, etc.) 50% reduction of the intensity of the Group’s Scope 3 carbon footprint (CO2e per unit)  (2) (see subsection 3.3.3.2 “Climate change: reduction and adaptation”)

This action will be launched in FY22

In FY21, opportunities to reduce carbon emissions for main crops will be identified working closely with suppliers and with organisations promoting sustainable agriculture

Key raw materials in this context refers to the proportion spent by the Group. It covers cereals and malted cereals, grapes and wines, agave, cane and beet products, and five key flavouring ingredients. (1) Footprint caused by agricultural raw materials for each litre of alcohol. (2)

There are two aspects to the Group’s actions in respect to agricultural product procurement: Responsible Procurement process, Blue Source (see — subsection 3.3.2.5 “Responsible Supply Chain”) allows Pernod Ricard to identify and evaluate direct suppliers at risk in order to develop mitigation action plans; Identification of environmental and social risks in our — terroir (agricultural activities) based on a study of the production of farm raw materials used by the Group’s Brand Companies to rank agricultural practices in terms of their environmental and social risks levels. For crops representing a high sustainability risk, action plans must be implemented by the affiliates, and alternatives are examined to secure sustainable supplies. The direct purchasing of agricultural products by affiliates results in several partnership initiatives such as: in Scotland, 100% of the barley purchased by Chivas Brothers is — certified to “Scottish Quality Cereals” or “Red Tractor” standards; in Mexico, Kahlúa worked with the NGO Fondo Para La Paz and — Ocotempa, a Mexican coffee community, to develop a sustainable model for coffee production. This “Coffee for Change” programme comprises social, economic and environmental criteria. Within four years, 100% of the coffee sourced by Kahlúa will be sustainably grown;

the Group has made sugar cane a priority as it is often grown in lesser — developed countries where social protection, working conditions, and respect for social rights or environmental protection are not guaranteed. In 2015, Pernod Ricard joined the Bonsucro association, whose purpose is to develop internationally recognised responsible practices for the sugar cane sector. To meet its 2030 ambitions, on top of developing Group Sustainable Agricultural Principles, the Group will start by conducting a terroir risk mapping exercise of its agricultural supply chains. The aim of this exercise is to map the origins of agricultural raw materials and identify social and environmental risks and opportunities in the local environment where they are grown. From the findings of the risk mapping, the Group will define preferred standards for each crop, introduce them in the sourcing requirements and get all key agricultural rawmaterials certified by a third party. Preserve and enhance biodiversity 3.3.1.3 Pernod Ricard is committed to protecting and developing the biodiversity of ecosystems in all regions it operates and distributes its products. All affiliates, Brand Companies with raw agricultural supply chains or Market Companies with purely distribution activities, will be part of this global effort.

Policies

Objectives

2030 S&RRoadmap

100% of affiliates will be engaged in a strategic biodiversity project.

There are several noteworthy measures taken by affiliates related to biodiversity such as: rehabilitation programme in an area of nine hectares of wetlands in the — Kaituna region in New Zealand. Protection of a local falcon species via a fund supported by the donation of one New Zealand dollar for each bottle of wine sold from the Brancott Estate “Living Land” series;

reforestation & biodiversity programmes in Ireland, Australia and — France.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT