PERNOD RICARD - 2018-2019 Universal registration document

3.

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

2030 S&R roadmap: Pernod Ricard is committed to developing the employability of all its employees throughout their working lives, offering all employees at least one future-fit training session every three years to ensure their employability. Action plans and next steps TransfoHRm: reviewing the internal HR strategy and processes as well as the introduction of a GroupHR reporting system In line with its three-year strategic Plan “ Transform&Accelerate ”, the Group launched its HR strategy named “ TransfoHRm ” this year, which sets the goal of making Convivialité a genuine performance accelerator by: putting the employee experience at the centre; — deploying diverse teams to improve both individual and collective — performance; and introducing a culture of success based on empowerment and — accountability, all supported by digital technology. Talent management system, Workday Until last year, different local HR tools were being used to manage the Group’s talents, their performance & development. With the recently launched employee-centric tool, Workday, Pernod Ricard will be able to streamline business processes, speak a common language and unify and enhance the reliability of information worldwide. The implementation of Workday also allows Pernod Ricard to accelerate data-driven actions for increased efficiency, and to ensure fairer and more consistent processes across the Group. By putting employees and their managers at the centre, this will speed up decision-making to have the right talent in the right position, with the right skills, at the right moment of their career. Accessible on computers and smartphones, employees can access information related to their position, career path, remuneration, assessments at all times. Annual performance and development reviews Pernod Ricard wants to develop its employees, preparing them to take on new challenges. The Group considers that everyone should have at least one formal performance, talent review, and ongoing development meetings each year with their manager. For that to happen, a new talent and performance annual cycle titled Let’s Talk Talent has been developed and launched across the Group in 2019. Let’s Talk Talent puts the employee at the centre by clarifying the expectations in terms of performance and competencies. It enables employees to meet several times a year with their managers to discuss and receive transparent and objective feedback about their performance in the role, their career perspectives and their individual development plan. Let’s Talk Talent also brings consistency and alignment in assessment of performance and talent identification across the business with common definitions and an integrated vision of performance, leadership competencies, sustained performance and potential. In addition, it ensures transparency and consistency of reviews through calibration processes and facilitates staffing of open positions, mobility, and succession plans for key jobs. Pernod Ricard University At Pernod Ricard University, dedicated programme Managers have been collaborating with the Business and HR Departments since 2011 to identify Learning & Development needs and design programmes with top institutions, consultants and internal functional experts. The format of training is a blend of e-learnings, class-room and experiential sessions assembled in a fine balance to deliver the greatest impact. For example, in the spirit of the Group Leadership Model, Pernod Ricard University introduced the Leadership Curriculum to support the development of individual leadership competencies. A very rewarding multicultural experience, it invites an open-minded reflection on personal change and the role of leaders. The programme is organised in two modules that participants can attend over time: Mixers, for young aspiring leaders, Shakers for confirmed leaders willing to be taken outside their comfort zone. Since the implementation of these programmes, 624 employees have benefitted from the “Mixers” programme, 204 from the “Shakers” programme.

The Group has drawn up a list of 31 protected or sensitive natural areas close to its production sites throughout the world, and it is monitoring these closely. These areas are mainly located in Scotland, Ireland, France and Sweden. To meet its 2030 ambitions the Headquarters will define guidelines for affiliates in relation to strategic biodiversity projects (selection of projects, global partners, identification of key performance indicators). Equipped with these guidelines, each affiliate will then identify and implement a biodiversity project. Brand Companies will focus on restoring biodiversity losses in the terroirs close to their production sites and Market Companies, will develop local partnerships to tackle local biodiversity issues.

Valuing People 3.3.2

People have been and always will be at the heart of Pernod Ricard and the foundation of its collective spirit as “ Créateurs de convivialité ” – sharing, warmth, care and respect for all. The Group promotes diversity and inclusion throughout its business and works with its suppliers to create shared value in its supply chain. This pillar is all about respect; respect for everyone in our marketing, respect for all those the Group works with across its supply chain and respect for its 19,098 employees (FY19 average) located across the globe – increasing employee attraction, lowering supply chain risks and meeting rising consumer

expectations around transparency. Due to the seasonal aspect of its activities, especially during harvest periods, 5.8% of the annual average headcount is on fixed-term contracts. Rather than using contractors, Pernod Ricard prefers to contract this temporary workforce so that they can also benefit from its development and Health & Safety policies. Talent management 3.3.2.1 Policies and objectives To support the Pernod Ricard Human Resources strategy, linked to the Global Strategic Framework of Pernod Ricard, a new leadership model has been developed to help the Group achieve its ambition of becoming the Industry Leader. This model will guide all Pernod Ricard employees to develop their leadership skills and be better prepared to deliver in the face of challenges, to drive change and to align themselves to the Group strategy. The leadership model has been developed through a collaborative process involving more than 60 Senior Managers, who defined the leadership behaviours Pernod Ricard needs to ensure its future success. A selection of 19 competencies were extracted from this exercise. These competencies were then grouped into six attributes that represent specific leadership capabilities and expected behaviours. The newly defined leadership competencies will be observed, acquired and improved with appropriate development strategies and action plans. These development strategies will then be translated into individual development plans with 70 % of the plan focused on job assignments, 20% on learning from others and 10% on dedicated training. These plans are mutual commitments between employee and manager on priority development targets, realistic and tangible actions to achieve the targets, resources needed, timing for completion and the ways to measure success. At Pernod Ricard there is a mindset of employees owning their career and development; as such each of them should have an individual development plan.

93

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT