PERNOD RICARD - 2018-2019 Universal registration document

3.

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

Actions plans and next steps Implemented throughout the Group, the Blue Source process allows affiliates to deploy the strategy of Responsible Procurement locally with their suppliers and subcontractors: supplier CSR commitments: to be signed by suppliers and — subcontractors with the aim of increasing awareness on Human Rights and labour law, health & safety, environmental impact, responsible drinking, integrity and fair business practices. This document is currently being updated o include additional commitments such as “Respect Land and water rights of communities”, “Environmental regulation”, “Animal welfare” and “Tax evasion”. Moreover, the Group took this opportunity to raise awareness among its suppliers and invite them to do the same. Both direct suppliers (Wet and Dry Goods) and the main indirect suppliers (POS/VAPs) who do not sign the updated version will see their business relations with Pernod Ricard suspended.

risk mapping tool for each affiliate to identify which suppliers and — subcontractors should be assessed as a priority according to set criteria of the Company: production or service, size, country presence, turnover, dependence of the supplier on the affiliate, annual expenditure, critical nature of the product, social, environmental and supply chain risks of the supplier; sustainability assessment using the EcoVadis platform and based — on four major topics: environment, social, ethics, and supply chain. Pernod Ricard recommends its suppliers to be re-evaluated every two years to identify areas for improvement and to assess the effectiveness of their action plans; social and ethical audits following the SMETA (Sedex — Members Ethical Trade Audit) standards , in line with the AIM Progress “Mutual Recognition Programme”.

FY19 2,675

FY18 1,693 2,483

Number of suppliers

That signed the Supplier CSR Commitment Analysed through the Risk Mapping tool

1,878  (1)

Identified as risky who are covered by an EcoVadis assessment

465 130

521

Audited 144 Change of follow-up methodology for 2019 in order to be consistent with the other Responsible supply chain KPIs: the Group now takes into account the number of suppliers which have been analysed (1) through the Risk Mapping tool and not the total number of evaluations done through the Risk Mapping Tool.

Circular Making 3.3.3

As far as employee commitment is concerned, Pernod Ricard makes a number of training documents available to inform employees about the environmental impacts of their day-to-day activities. As an example, Pernod Ricard offers an online learning module covering merchandising, designed for Marketing and Communications employees, and highlighting the risks related to the development and purchasing of promotional products. In addition, training is offered in various formats throughout the year, including telephone calls, workshops and seminars. The Group will conduct the following next steps: complete analysis of direct suppliers (Dry and Wet Goods) and key — indirect suppliers (POS/VAPs); explore partnership plans to engage in a multi-stakeholder — programme. Pernod Ricard is already working with Bonsucro, a global multi-stakeholder non-profit organisation to promote sustainable sugarcane production, processing and trade around the world. The Group is also part of Aim-Progress, a forum of leading Fast Moving Consumer Goods manufacturers and common suppliers, assembled to enable and promote responsible sourcing practices and sustainable supply chains; train procurement Managers and/or functions on Responsible — Procurement process including labour rights and Human Rights considerations; expand Responsible Procurement process on key other indirect — categories.  (1)

The world is under huge pressure with finite resources. Pernod Ricard intends to do its part in decreasing the use of natural resources and minimising waste at every step of the value chain by imagining new production ways that optimise and help preserve natural resources. The traditional single-use consumption model has now reached its limits and new circular models must emerge to protect our planet and natural resources. Circularity is one of the Group’s key priorities. In order to be more circular, Pernod Ricard is committed to moving its business towards a circular making model

that fosters reduction, reuse and recycling. Such a shift will allow the reduction of resources consumed, waste disposed, and ultimately reduce Pernod Ricard’s impact on the environment. Environmental management 3.3.3.1 Pernod Ricard strives to implement strong environmental management systems, throughout the business. They are the foundations of the Group’ strategy, by helping it tackle long-term environmental risks, reduce its environmental impact and size opportunities at every layer of its activities. Environmental management systems aim at disseminating the Group’s environmental standards throughout business activities and integrating environmental considerations in its management practices, to manage risks and transform the business into a more circular model.

Indirect advertising and promotional investments: all expenses related to the advertising and promotion of our brands (such as expenses relating to media, POS articles and added value (1) packaging (AVP), content production, events, research and research reports).Direct purchases: all purchases directly integrated in the composition of the final product (raw materials such as ingredients, glassware, caps, etc.).

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT