How we bring...

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A T D P R E CA RNOD RI Creating a more ocial responsibility and care has sat at the heart of Pernod since its early beginnings. Our founder, convivial world, Paul Ricard, was an early philanthropist, who valued his people, the environment and communities. a world Sustainability & Responsibility without excess are part of our past, our present…

e are ‘Créateurs de Convivialité’. Our history is rooted in being a sustainable and responsible company. Deeply embedded in this conviction is the notion of sharing – sharing with each other We are responsible for but also with our communities and all of the world’s natural inhabitants. building a better world for Back in 1966 our founder Paul Ricard started the future generations, together. Paul Ricard Oceanographic Institute, leading the charge It’s our duty. still today for ocean preservation. We have also been consistently committed to preventing and reducing alcohol harm and addressing other sustainability topics. PAUL RICARD For us today, Sustainability & Responsibility (S&R) addresses all aspects of our business and is one of our business’s four key drivers and embedded in our strategic ...and our future plan business plan, ‘Transform & Accelerate’. Our 2030 S&R roadmap is based on four key pillars with strong 2030 objectives supporting the United Nations Sustainable Development Goals (SDGs).

We believe that there can be no “Sustainability & Responsibility are part convivialité with excess and strive of our history. It draws on our vision ‘Créateurs de Convivialité’ and is one to be sustainable and responsible of our business priorities. Our 19,000 at every step of our production employees bring it to life, adding – from grain to glass. value to our business.”

ALEXANDRE RICARD

01 making a meaningful, positive difference

Sustainability & Responsibility for us is Our manifesto will guide us on our journey centered around a robust framework...

THE MANIFESTO

Créateurs

We increase diversity We minimize waste at every and fairness for all our people step by producing and distributing de Convivialité and empower people across our products and experiences in our supply chain. ways that optimize and help preserve natural resources. True to our founding spirit, we’ve been bringing people together, inviting them to share authentic experiences and making new friends every day through our world-class portfolio of premium and spirits.

We are passionate hosts ... a family of exceptional people who are committing to fighting alcohol misuse and creating a better way to live and work together, to bring good times today and We nurture every terroir and its We fight alcohol misuse in society for generations to come. biodiversity and respond to the by taking action on harmful challenges of climate change, to drinking and engaging with our ensure quality ingredients now stakeholders for real change. and for generations to come. We are respectful guests ... who care for and strive to protect and nurture the terroirs and environments in which we live. We partner with local farmers and respect local communities to benefit our planet, our consumers and our business.

We bring good times from a good place, to create a more convivial world, a world without excess. You can find out more about each of our pillars and associated commitments on pages 06–13

02 03 Addressing Contributing our entire throughout our business VALUE chain

u r Sustainability & Each pillar includes ambitious Our Sustainability & Responsibility strategy puts a key focus on Responsibility roadmap’s targets to drive innovation, brand contributing to eight UN SDGs, those which we feel our impact can four pillars: Nurturing Terroir, differentiation and employee be greatest, but our sustainable approach to business means that Valuing People, Circular attraction. With a clear governance we contribute to 14 SDGs across our value chain. Making and Responsible Hosting are structure, the strategy will be all directly supporting the United implemented throughout the business Nations Sustainable Development with brands reporting and measuring Operating our business Goals (SDGs), ensuring our business success. All pillars are based on a 2030 is aligned with the ‘World’s to-do list’ timeline, staying true to the schedule to help reach prosperity for the planet set out by the UN SDGs, with key and its people. In 2018, we received milestones in between. By taking this LEAD participant status for our work robust approach to reaching targets, with the UN Global Compact – notably we can ensure that we ‘walk-the-walk’ Agricultural production on working towards the SDGs. as well as ‘talk-the-talk’. Raw materials

TURAL ICUL PRO Consumption GR DU Elaboration VISION FOCUS .A CT 1 IO Product end of life N Pressing, vinification, distilling, maturing N O I and blending T 2 P . E Créateurs M L U A

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D I S 4 PILLARS T R I B U T G The big topics we’ll focus I O IN N G on to deliver our ambition. & A K LO C G PA Distribution IS 3. Packaging TICS and logistics Bottling and packaging Transport by road, COMMITMENTS sea and rail TARGETS + KPIS

Gives form and substance to our Delivered through a series of actions. vision and will resonate with brands. Measured and tracked with targets & KPIs.

04 05 Many of our brands are already safeguarding natural ecosystems. Nurturing

ur Campo Viejo winery in Spain has used a variety of tactics to reduce and offset its greenhouse gas emissions. The winery also prioritizes the biodiversity of the -30% region by protecting and nurturing At our Glenlivet All of our products come from nature and take their it to ensure it thrives. distinct character from the land where they were grown. distillery, replacement of heavy fuel with natural gas has reduced the site’s erroir’ means earth or soil in direct CO2 emissions French; the birthplace from our key by 30% per unit of pure which all our products take alcohol produced. their characters from. Across our commitments business, we source our natural Bodegas Campo Viejo winery, 1. Biodiversity: By 2030, 100% of La Rioja, Spain ingredients from over 250,000 hectares our affiliates will have a strategic of land and so we are committed biodiversity project, addressing Our distillery is looking at to nurturing every terroir and its the most pressing local innovative ways to make grapes biodiversity, responding to the biodiversity issues. more resistant to climate change. challenges of climate change to icard Plantes Fraiches is made ensure quality ingredients now 2. Regenerative agriculture: Kahlúa is partnering with an NGO from fresh anise cultivated and for generations to come. By 2025, we will develop regenerative for their ‘coffee for change’ program in the South of France with agriculture pilot schemes within our – ensuring that coffee growing is sustainable agricultural practices and owned vineyards in 8 regions: 100% sustainably grown. distilled within 24 hours of harvest. – Argentina, California, , This product embodies a truly localized OUR FOCUS , Spain, Australia, approach to ingredients sourcing. New Zealand and China – to mimic n New Zealand, our Brancott Contributing to the SDG 13: Climate Change and SDG 15: natural processes to improve the Estate winery has partnered Life on Land, this pillar focuses quality of top soil, watersheds and with the Marlborough Falcon on biodiversity along with ecosystems. By 2030, we will then Trust to help conserve and protect addressing our agricultural partner with over 5,000 farmers New Zealand’s most endangered footprint to tackle all to share this knowledge further. bird of prey — the Karearea Perrier-Jouët and G.H Mumm have sustainability issues in these locations. falcon. This majestic bird of prey both been awarded the highest sustainable viticulture and high In addition to these commitments, has proved to be an invaluable environmental value (HEV) we are also addressing climate resource in the certifications for taking care of the change from agricultural production vineyard, helping environment, conservation of the using Science-Based Targets (SBTs), to deter other landscapes and biodiversity. identifying and certifying all of our birds from main raw materials, and having damaging detailed plans to address localized the grape sustainability issues (water scarcity, crop before pesticide use, etc.) in each of the the harvest. regions our ingredients come from.

06 07 Across our business, we have many examples that value and respect all those we work with. Valuing

Convivialité is about sharing, warmth, care and respect for people everywhere.

eople have been and always ur annual Responsib’ALL will be at the heart of our key Day, where all our 19,000 everything we do at Pernod employees worldwide engage in Ricard and the foundation of our commitments bsolut and Altos community projects, is another collective spirit as ‘Créateurs de 3. Equality and future leadership brands are leading prime example of how we engage Convivialité’. We promote diversity By 2022, we will ensure equal pay the charge in building with our local communities and and inclusion throughout our business across the business and by 2030, partnerships with bartenders work together to reach shared and work with our suppliers to create our top management team will be for sustainable bartending. goals. The day is directly linked shared value across for all. gender balanced. In addition,by to the UN SDGs, giving yet greater Altos 2030, 100% of employees will have has developed the meaning and weight to its impact. ‘Tahona Society Collective Spirit’, received future-fit training at least a bartending c ompetition focused every three years to develop new OUR FOCUS on encouraging bartenders to be skills. Contributing to the SDG 8: more socially and environmentally Decent Work and Economic 4. Shared knowledge and learning conscious. The winners of the Growth Gender and SDG 5: By 2030, we will train 10,000 competition can develop their Equality, this pillar is all about bartenders on the bar world of respect; respect for everyone in projects to push the industry into our marketing, respect for all tomorrow, to host consumers in a a more sustainable direction. People on Responsib’ALL Day those we work with across our more sustainable way including Absolut has recently launched supply chain and respect for being anti-waste and plastic-free. our 19,000 employees located the ‘Green Hustle’, a program across the globe – increasing dedicated to helping bartenders ach year our ‘Chivas Venture’ employee attraction, lowering be more sustainable with an competition searches for supply chain risks and meeting This pillar also sets out to embed open-source platform filled with the world’s best social start- rising consumer expectations a United Nations Human Rights low-waste recipes, sustainable ups. Candidates from all over the around transparency. approach, using the UN Guiding tips and other tools to help the world participate with the winners Principles on Human Rights, across bartending community. receiving $1 million in funding. our business, strengthening our responsible procurement processes. We also have an official global Jameson has created the ‘Love Thy partnership with Trash Tiki, the Neighborhood’ campaign where anti-waste bartending duo. all the proceeds from block parties went to ‘Keep America Beautiful’ – an NGO focused on beautifying communities across the US.

08 09 Circularity is a mindset that is gaining speed throughout our business. Circular

e are proudly a signatory of the Ellen MacArthur foundation’s ‘New Plastics Economy’, where we can learn from other companies and apply these learnings to our own challenges. We share a world of finite resources under huge pressure.

e are committed to minimizing waste at every step by producing our key and distributing our products and commitments experiences in ways that optimize 5. Packaging and waste n Pernod Ricard India, the and help preserve natural resources. By 2025, we will ban all promotional four Rs are used to address water Circular models focus on reuse, reduce items made from single-use plastic consumption: Reduction, Reuse, and recycle approach so that we and 100% of our packaging will be Recycling and Recovery. To date, minimize waste and the impact the affiliate has thereby reduced its recyclable, compostable, reusable or Our Absolut distillery in Ahus, on the environment. water consumption by 36% since 2010. bio-based. In addition to which, by Sweden is the world’s first carbon 2030 we will pilot five new circular neutral distillery, deploying many ways of distributing wine and innovative practices to move OUR FOCUS spirits and help increase recycling towards circular production rates in our top 10 largest markets and minimizing waste. This also Contributing to SDG 12: 365M with low recycling levels. 365M liters of water saved includes food waste – 99% of Responsible Consumption and Production and SDG 14: Life Below 6. Water balance and organic by-products are recycled to create products such as animal Water — our goal is to move carbon-footprint It has also built 13 facilities for towards more circular models feed and biogas. This stillage is By 2030, we aim to be water rainwater collection and storage, throughout our business, from used to feed nearly 300,000 pigs balanced in all high-risk water- 13 dams, 40 recharge wells and 16 the packaging we use, to the and cows every day. promotional items we produce sheds, replenishing 100% of water dredging projects corresponding to and the way we distribute our consumption from production 365 million liters of water, equivalent products so that we minimize sites. We also commit to reducing to two years of water consumption our carbon footprint and the overall intensity of our carbon for all Indian sites. preserve water. footprint by 50% by 2030 in line with ltos Tequila uses 98% organic the science-based targets initiative. DID YOU KNOW waste to fertilize new agave plants, reusing what would At Plymouth , the distillery is powered by 100% renewable traditionally be thrown out to hydropower and the botanical foster new life. We are also committed to moving waste is transformed into towards 100% renewable electricity sustainable energy. by 2025, incorporating eco-friendly design and finding new ways to reuse waste water.

10 11 Responsible

into a partnership with four major drinking ambassadors. We want all social media platforms, joining forces our consumers to receive the highest on responsible marketing, consumer quality information regarding our choice and minors’ protection. products, the ingredients we use, their nutritional values and how We believe that information is key in to enjoy them responsibly. We fight alcohol misuse in society by making the right choices. We want all taking action on harmful drinking and engaging our employees to be our responsible with our stakeholders for real change.

Our Group has engaged in many ur products bring people programs to combat alcohol misuse together and serve a across our affiliates. valuable role in society. our key We acknowledge that alcohol however commitments can be misused and that inappropriate 7. Alcohol misuse: By 2030, each consumption of alcohol can cause of our 86 affiliates will have at n Sweden, the Prata Om Alkohol serious problems to individuals and least one program in partnership, program (Talk about Alcohol) has our communities. at scale and evaluated to fight been bringing the industry, schools alcohol misuse. and parents together since 2006 to raise awareness among middle-school 8. Responsible Party: By 2030, we pupils about the risks of excessive OUR FOCUS will expand the Responsible Party alcohol consumption and postponing We believe that we have a program globally to reach at least alcohol debuts – reaching more than role to play to support SDG 3 1 million young adults. Health and Wellbeing and 620,000 teenagers. Pernod Ricard to prevent and reduce participates in similar programs in harmful use of alcohol. Finland, North America, and also esponsible Party is Pernod We are also committed to ensuring Mexico and South Africa. Ricard’s flagship responsible We know that addressing that all advertising and marketing alcohol abuse cannot be done drinking program. campaigns are prepared with a due alone, and partnerships with We partner with Erasmus Student other industry members, sense of social responsibility, and in Network since 2009 to tackle binge governments and local particular we want to protect minors odigos Responsables program drinking amongst exchange students. communities are necessary for from all our on-line and off-line is run by our affiliates in success. This is why we have The program has reached over campaigns. All our campaigns – Argentina and Uruguay linked this pillar with SDG 17 400,000 exchange students so far digital or print – must comply with our together with local retailers to prevent Partnerships for the Goals. in 32 European countries. The Code for Commercial Communications the sale of alcohol to minors. Each Responsible Party crews distribute and be validated by our Responsible time a cashier scans the barcode of water and interact with students, to Marketing Panel. In September 2018, any of our products, a responsible raise awareness about the dangers of together with other spirits, wine and selling message pops up, excessive drinking and reduce harm beer producers, Pernod Ricard entered reminding to ‘always ask during the parties. for ID, and to not sell to minors’.

12 13 key milestones Pernod Ricard

Our S&R journey to date... at a glance 1971 1990 1966 Institut de Joined Entreprise & Paul Ricard Recherche Prévention (now ‘avec Oceanographic institute Scientifique modération’) and €8,987M€8,987M is founded sur les Boissons EFRD (now ‘spirits GloballyN°2 in wines and spirits1 In net sales in 2017/18 is founded EUROPE’) N°2

2004 €2,358M 1997 2003 Adopted a global 19,000 N°1 QSE (Quality, Safety, Started a cultural Joined the United 19,000 In profit from For premium, Environment) approach partnership Nations Global employees in recurring operations ultra-premium Compact with the Centre 86 countries in 2017/18 and prestige spirits1 Pompidou in Paris 2005 Joined IARD

2006 2007 2010 Added the pregnant Launched Pernod woman logo on Ricard Code for Launched 10-year Group 96%96% 20% reduction in 30% reduction environmental roadmap. 4 4 our bottles Commercial of affiliates implemented at water consumption in CO2 Communications Achievements to date: least one initiative for local 20% reduction in community development water consumption and partner engagement 3

2013 2016 30% reduction in CO2 Committed to (1) Source: The Pernod Ricard Market View, based on IWSR volume Joined Transparency 16 brands among 93 production contribute to the United 93% of manufacturing data ending 2017. (2) Source: Impact Databank 2017, published International March 2018. (3) Source: Internal, non-financial reporting. the Top 100 sites sites and 95% of vineyards 2 Nations Sustainable (4) Reduction per unit of production between 2010 and 2018. worldwide Development Goals covered by ISO 14001 2018 17 Joined the Our strategic Recognised as Ellen MacArthur a LEAD Global 2019 international Foundation’s New 2019 Compact Company Launched our new 2030 S&R roadmap Plastics Economy bran