Scope 1 Emissions
2022 Communication on Progress
Pernod Ricard
Published date
June 27, 2022
No. of questions
70
Supplemental files
Pernod Ricard_Code of Business Conduct vENG.pdfPernod Ricard_Global Human Rights policy_eng.pdfPernod Ricard_Universal Registration Document 2020-2021.pdfPernod Ricard_Global Environmental Policy_eng.pdfPernoc Ricard_Supplier Standards_eng.pdfAuditors' report_URD Pernod Ricard 2020-2021.pdfPernod Ricard_Universal Registration Document 2020-2021.pdfPernod Ricard_Global Human Rights policy_eng.pdfPernoc Ricard_Supplier Standards_eng.pdfPernod Ricard_Global Human Rights policy_eng.pdfPernoc Ricard_Supplier Standards_eng.pdfPernod Ricard_Global Environmental Policy_eng.pdfPernoc Ricard_Supplier Standards_eng.pdfPernod Ricard_Code of Business Conduct.pdfPernod Ricard_Global Human Rights policy_eng.pdfCEO Statement
Signed
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
Optional commentPernod Ricard publishes its non-financial information annually in its Universal Registration Document, including information on CSR governance, environmental and social impacts, sustainability-related objectives, CSR risks and opportunities. In addition, it is clearly stated that there is also zero tolerance for corruption.2. Does the company have a publicly stated commitment regarding the following sustainability topics?
3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
Optional commentWe have put in place a code of conduct covering all the above-mentioned topics: the code of business conduct for ethical issues (incl. corruption, HR and LR), supplier standards for human and labour rights but also environmental guidelines for our suppliers, a human resource policy and finally an environmental policy, which are all translated into specific guidelines. The Pernod Ricard Code of Business Conduct, updated in FY22, includes Human Rights and Fundamental Freedoms and environmental matters as well. It is available on our website: https://www.pernod-ricard.com/sites/default/files/inline-files/PR%20Code%20of%20Business%20Conduct%20-%20ENGLISH%20Version%20-%20June%202022%20_0.pdf In addition, Pernod Ricard has also strengthen the culture of compliance by supporting the deployment of the “Code of Business Conduct”: a dedicated MOOC has been successfully completed by 13,212 employees. It represents 92% of the mandatory target population during the first campaign (i.e. all employees with a company-issued electronic device). This MOOC is a mandatory as part of the onboarding pack for new employees and completion is monitored.4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
Optional commentRegarding Human Rights, Labour Rights and Environment, the Executive Vice President, Human Resources, Sustainability & Responsibility oversees the implementation of the policies by the Regional CEOs of the Group. Regarding corruption issues, the Pernod Ricard Code of Business Conduct is prefaced and endorsed by the Chairman and CEO. Pernod Ricard’s General Counsel – Compliance Officer is in charge of structuring and promoting the Group’s comprehensive and robust anti-corruption programme.5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Optional commentHuman Rights/Labour Rights: HR Directors and each Managing Director at local level are in charge of implementing the Pernod Ricard Global Human Rights Policy. As a decentralised organisation, Pernod Ricard gives responsibility to its affiliates for adopting, respecting and promoting the policy. Visits to affiliates by cross-functional internal audit teams include some labour evaluation. Managing Directors’ performance evaluations cover labour matters as well as societal and financial performance. Environment: Pernod Ricard has dedicated governance and organisational structure to ensure that environmental issues are fully incorporated into its strategy. That is why the Sustainability & Responsibility Senior Steering Committee (S&R Senior Steering Committee), chaired by Pernod Ricard’s Chairman and CEO, was created. Pernod Ricard also has a dedicated Sustainable Performance team at HQ, responsible for implementing its environmental strategy. Anti-Corruption: The Pernod Ricard Code of Business Conduct, prefaced and endorsed by the Chairman and CEO, applies to all employees of the Group. Pernod Ricard’s General Counsel – Compliance Officer is in charge of structuring and promoting the Group’s comprehensive and robust anti-corruption programme.Prevention
6. Does the company have a process or processes to assess risk?
Optional commentc6.1. During the assessment of risk, which business relationships are reviewed?
Optional commentPernod Ricard’s Third Parties are subject to a due diligence process to determine their compliance risk profile (low, medium or high), allowing the Group to adjust, as appropriate, contractual and operational relationships to mitigate potential risks. All our suppliers must also sign our supplier standards, that is one of the many goals of our S&R strategy. As this document also includes Labour and Human rights, Health & Safety, Environmental impact, Integrity and fair business practices and Responsible Drinking commitments. The risk assessment based on the above list of categories is done via internal risk mapping tool questionnaires (only for the following category of purchases: packaging, raw material, promotional products). Raw materials have their own risk mapping tool called Terroir Risk Mapping Tool.7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
7.1. During the due diligence process, which business relationships are reviewed?
Optional commentCorruption: Pernod Ricard’s Third Parties are subject to a due diligence process to determine their compliance risk profile (low, medium or high), allowing the Group to adjust, as appropriate, contractual and operational relationships to mitigate potential risks. Various levels of verification are set out under the procedure, depending on the initial risk assessment of each relationship category, as identified by Pernod Ricard’s Sapin 2 risk map on corruption and influence peddling. Other topics (Environment, Human and Labour Rights risks): implemented throughout the Group, the Blue Source process allows affiliates to apply the Responsible Procurement strategy locally with their suppliers and subcontractors. The Supplier Standards must be signed by all suppliers on the Partner Up platform with the aim of increasing awareness around Human Rights and labour law, health & safety, environmental impact, responsible drinking, integrity and fair business practices. Both direct suppliers (Wet and Dry Goods) and the main indirect suppliers (POS/VAPs) who do not sign the updated version of the Supplier Standards (updated in 2019) will see their business relations with Pernod Ricard suspended. In addition, the risk mapping tool allows each affiliate to identify which suppliers (Wet and Dry Goods, POS/VAPs) and subcontractors should be assessed first according to set criteria regarding the Company: production or service, size, country footprint, net sales, dependence of the supplier on the affiliate, annual expenditure, critical nature of the product, social, environmental and supply chain risks of the supplier. For our Terroirs, we aim to eventually assess all our strategic suppliers.Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
Optional commentWhistleblowing policy: employees are invited to speak up about, among other things, any potential corruption situation in relation to the Pernod Ricard activities inside or outside the Company. As part of the protection owed to whistleblowers, alerts may be filed anonymously, and the Group promotes a clear non-retaliation policy Speak-Up focus: global whistleblowing hotline accessible to all third parties worldwide (Internet or telephone), 24 hours a day, seven days a week, in a wide variety of languages, ensuring confidentiality and anonymity (if allowed by local legislation) to encourage Pernod Ricard stakeholders to raise concerns about, among other things, any corruption-related matter or any breach of the business integrity rules. There is also the possibility to report any CSR issues, such as human/labour rights violations or environmental breaches through Speak-Up. Please refer to the Code of Business Conduct for more information or check our dedicated webpage: https://secure.ethicspoint.eu/domain/media/en/gui/104594/index.html8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
Optional commentPlease refer to our Universal Registration Document - 3.4.2.3 Whistle-blower system (p140), our Code of Business Conduct. For more information, you can also visit our website: https://secure.ethicspoint.eu/domain/media/en/gui/104594/index.html9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Optional commentSpeak-up reports that are deemed to be filled in good faith can be subject to internal investigation following a preliminary assessment from the Integrity Committee. This is comprised of the following Group-level functions: Legal, Internal Audit, HR and S&R. If the allegations reported end up being substantiated, the Integrity Committee or its local delegate examines their severity and makes recommendations to the management who decides on the appropriate mitigation and/or remediation measures, and/or disciplinary sanctions against the wrongdoer(s). Pernod Ricard conducts dedicated workshops with Human Resources Directors and with the legal and compliance network to manage whistleblowing cases and conduct investigations. Pernod Ricard’s “Speak-up policy” also includes the possibility to report, in good faith, any potential CSR violations, such as environmental breaches for instance.Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
Optional commentOnly the CEO of Pernod Ricard S.A Group is an executive member.13. Do you produce sustainability reporting according to:
Optional commentAlso, we produce sustainability reporting according to EU Non-Financial Reporting Directive and the EU TaxonomyData Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Optional commentBased on the audit works, the auditor's responsibility is to express a limited assurance conclusion on: - the compliance of the Statement with the requirements of article R. 225-105 of the French Commercial Code; - the fairness of the information provided pursuant to part 3 of sections I and II of Article R. 225105 of the French Commercial Code, i.e. the outcomes of CSR policies, including key performance indicators, and measures relating to the main CSR risks and opportunities The auditors' report attached is an extraction of p147-149 of our 2020-2021 Universal Registration DocumentHuman Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Optional commentPlease refer to our Global Human Rights policy and our Supplier Standards for more information. Both documents are available on our website.Commitment
2. Does the company have a policy commitment in relation to the following human rights issues?
Optional commentOur water commitment in our local communities is available p9 of our Human Rights Policy. It is available also on pages 2 and 3 of our Supplier Standards.2.1. For each human rights policy, is it:
Optional commentThe Global Human Right policy is publicly available online. It has been approved by Pernod Ricard's Chairman and Chief Executive Officer. It is aligned with international human rights standards, protocols and guidelines (such as OECD, ILO, SDGs, UN Global Compact 10 principles...). It is structured by type of commitments: in our own operations, in our supply chain and in local communities.Prevention
3. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following human rights issues?
4. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this human rights issue?
Optional commentDuring FY20 Pernod Ricard defined its Sustainable Agriculture Key Principles. This document presents a set of best practices related to landscape management, biodiversity, plant health and soil life, water, human rights and relations with suppliers. Also, a full risk mapping was conducted for 93% of priority terroirs (55/59): learnings from the terroir risk mapping demonstrate the crop sensitivity to the effects of climate change, including high sensitivity to drought, as well as its impacts on ecosystems (water notably) and on communities. Examples of concrete actions taken: In India, Pernod Ricard India Foundation’s flagship programme WAL (Water, Agriculture, Livelihoods) aims to foster water resilience, promote sustainable and regenerative resource management while securing the livelihoods of disadvantaged communities such as smallholder farmers, women and young people. Another one would be, that in the Philippines, Malibu works with 500 coconut farmers to increase yields, improve access to water and sanitation, provide training and technical support, support young people and children to prevent migration for work and improve the whole livelihood of the community. Because water resources are unevenly distributed, risk levels vary depending on the location of the Group’s production sites and dedicated co-packing activities. To better understand and identify priorities, sites have been categorised as extremely high risk, high risk and low-medium risk, using an internal Water Risk Index. This led to support watershed management by improving access to safe water and sanitation, promoting sustainable water use and integrating water resources management among communities. Seven Indian dedicated co-packers are located in high-risk areas and are concerned by the Group water resource preservation strategy. The water resource preservation strategy has been launched on sites located in “extremely high risk” and “high-risk” areas. PR India have already implemented water projects in their watersheds. They are actively engaged with communities through the development of water replenishment projects in order to support water conservation and also provide or improve access to safe water and sanitation. Other sites are in the process of finding a project partner and investigating water project options.5. Who receives training for the following human rights issues?
Optional commentTraining is mostly provided to operational teams in our affiliates.6. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following human rights issues?
Optional commentWe aim to reach 100% of water replenished in watersheds with same level of risk for our production sites and dedicated copackers located in high risk areas.Response
7. During the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to adverse impact associated with the following human rights issue(s)?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
In FY18, Pernod Ricard joined the UN Global Compact’s Decent Work in Global Supply Chains Action platform, an alliance of companies committed to respecting Human Rights and fundamental principles and rights at work. This involves working through their supply chains and taking collective action to address decent work. In FY19, a study based on the UNGPs and Human Rights was conducted on the Group’s supply chain to identify gaps and improve its due diligence on Human Rights over the long term. In FY21, to embed a UNGPs approach, Pernod Ricard launched an assessment questionnaire with its HR network in line with its Human Rights policy and focusing on its own employees and internal practices. In addition, an external country-level screening and mapping of potential Human Rights risks was conducted. The top priorities identified by affiliates were Health & Safety and Discrimination, Diversity & Inclusion demonstrating alignment with the increased efforts by the Group in developing roadmaps in these areas. In FY22, the Group intends to extend its impact assessment beyond its own operations, covering the whole value chain to identify salient Human Rights issues and prioritize action. Pernod Ricard will also increase internal communication and best practices sharing of Health & Safety and Discrimination, Diversity and Inclusion efforts and roadmaps. Starting with its agricultural supply chains, Pernod Ricard mapped its different terroirs to assess environmental and social risks that may be present on these terroirs, and finally implement eventually sustainability programmes. Fifty-nine terroirs have been identified as strategic priorities in the framework of the action plan since they represent 94% of annual purchases (by spend) and supply key or iconic raw materials. Fifty-five of these fifty-nine terroirs have been subject to a full risk mapping analysis: 25 were assessed with a high-risk level, 16 with a medium risk level and 14 were judged at low risk. Water availability and water pollution have been identified several times (25 and 16 times respectively) as potential risks.Labour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commentPlease refer to our Global Human Rights policy and our Supplier Standards for more information. These two documents are publicly available on our website.1.1. For each labour rights policy, is it:
Optional commentOur Global Human Rights policy is publicly available online. It has been approved by Pernod Ricard's Chairman and Chief Executive Officer. It is aligned with International human rights standards, protocols and guidelines (such as OECD, ILO, SDGs, and UN Global Compact 10 principles). Developed with numerous internal stakeholders, Pernod Ricard's Global Human Rights Policy is divided into three key sections: “in our own operations”, “in the supply chain” and “in our local communities”. This policy has been developed involving internal experts and is based on ILO principles, the SDGs and 10 principles of the UN Global Compact, ISO 45001 standard and OECD guidelines (the alignment with internal standards, guidelines and protocols is presented on p12 of our policy). In addition, the Pernod Ricard Code of Business Conduct, updated in FY19, includes Human Rights, Labour Rights and Fundamental Freedoms. The Supplier Standards have been updated in FY19 with additional commitments on this front.Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
Optional commentTwenty years ago, Pernod Ricard also signed up to the Business Workplace Diversity Charter, which aims to encourage the employment of different members of French society. This Charter bans all forms of discrimination in recruitment, training, and professional development. Each year, our affiliates sign roughly 150 agreements with the various social partners worldwide, thereby encouraging improved social dialogue. The agreements signed by affiliates during the past year mainly covered compensation and profit-sharing, group welfare schemes, remote working and occupational health and safety.3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
Optional commentCSR auditors that review our Universal Registration Document have audited for FY21 the following key performance indicators: Frequency rate, Severity rate, Number of work accidents with lost time, Employees covered by a welfare protection plan (death and invalidity) with a benefit equivalent to at least one year of the employee’s fixed annual salary, Employees benefitting from health insurance. They also conducted a qualitative audit on Human Rights and Health & Safety topics. In addition, Pernod Ricard has developed training for employees on the Code of Business Conduct (which includes Human Rights and Labour Rights). With a “learning by doing” approach, a mandatory MOOC is in place to train employees on our updated Code of Business Conduct. This training was successfully completed in 2019 by 92% of the mandatory target population during the first campaign (i.e. all employees with a company-issued electronic device). Since then, the MOOC is mandatory as part of the onboarding pack for new employees and completion is monitored, and any Human/Labour rights issues can be reported through our whistleblower system. Also, labour and ethical audits have been conducted on some of our suppliers following the SMETA (Sedex Members Ethical Trade Audit) standards, in line with the AIM Progress “Mutual Recognition Programme.4. Who receives training for the following labour rights issues?
Optional commentPernod Ricard has developed training for employees on the Code of Business Conduct (which includes Human Rights and Labour Rights). With a “learning by doing” approach, a mandatory MOOC is in place to train employees on our updated Code of Business Conduct. This training was successfully completed in 2020-2021 by 92% of the mandatory target population (i.e. all employees with a company-issued electronic device). Now, the MOOC is mandatory as part of the onboarding pack for new employees and completion is monitored. Moreover, more than 8,000 farmers have been trained on Human and Labour Rights issues in FY21. Regarding Health & Safety, a key action launched in FY21 is the Pernod Ricard training programme “Care by Learning”, where more than a hundred Safety Champions from affiliates have been trained in order to become the new trainers for the local teams and roll out the new safety culture. In terms of high-risk activity, a strong focus was put in FY21 on material handling equipment, that can cause a risk of collision for pedestrians. All affiliates have implemented prevention measures following an assessment of their local practices. In FY22 the implementation of the roadmap will be accelerated with the roll-out of a new IT platform to manage safety incidents across the whole Group, the extension of the safety culture audits and the global cascade of the Care by Learning programme to local teams with mandatory e-learning for all employees.5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Optional commentGlobally, by 2025, Pernod Ricard commits to align with the United Nations Guiding Principles (UNGPs) on Human Rights including due diligence across the Group’s operations and strengthening our responsible procurement processes. Regarding our suppliers, by 2025, Pernod Ricard commits to implementing all mitigation plans with high or medium supplier risks. We also aim at covering 100% of agricultural raw materials (annual purchases) by risk mapping by 2022. This risk mapping aims to map the different terroirs to reach full traceability, assess environmental and social risks that may be present on these terroirs, and implement eventually sustainability programmes. On those terroirs, Pernod Ricard commits by 2030 to cover 100% of high/medium risk priority terroirs by mitigation projects (including environmental issues but Human Rights issues as well). Each year, the affiliates sign roughly 150 agreements with the various social partners worldwide, thereby encouraging improved social dialogue. The number of agreements signed depends on changes to local legislation.Performance
6. What is the percentage of employees covered under collective bargaining agreements?
Optional commentThis information is not disclosed in our 2020-2021 Universal Registration Document.7. What is the percentage of employees in a trade union or other workers' organization?
Optional commentThis information is not disclosed in our 2020-2021 Universal Registration Document.8. In the course of the reporting period, what was the percentage of women in:
Optional commentFor this question, the definition of senior leadership level position has been aligned with our internal definition of the "Top Management", meaning employees from band C and above. For women in non-executive board, please note that all female members of Pernod Ricard Board of Directors are non-executive.9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
Optional commentPlease refer to our 2020-2021 Universal Registration Document for more information, especially on p111 - Pernod Ricard is committed to ensuring by 2022 equal pay across the business (gender pay gap) taking into consideration that 1% is not considered as a gap by external providers.10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentInternal Pernod Ricard definition: Frequency rate = number of non-fatal workplace accidents with lost time × 1000/total number of employee and interim staff expressed in full time equivalent.11. In the course of the reporting period, what was the company’s incident rate?
Optional commentInternal Pernod Ricard definition: Severity rate = number of days of absence for workplace accident × 1000/total number of employees and interim staff expressed in full time equivalent.Response and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
Optional commentThose elements are confidential, therefore not published. However, it should be underlined that if the allegations reported end up being substantiated, the Integrity Committee or its local delegate examines their severity and makes recommendations to the management who decides on the appropriate mitigation and/or remediation measures, and/or disciplinary sanctions against the wrongdoer.13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
In FY18, Pernod Ricard joined the UN Global Compact’s Decent Work in Global Supply Chains Action platform, an alliance of companies committed to respecting Human Rights and fundamental principles and rights at work. This involves working through their supply chains and taking collective action to address decent work. In FY19, a study based on the UNGPs and Human Rights was conducted on the Group’s supply chain to identify gaps and improve its due diligence on Human Rights over the long term. In FY21, to embed a UNGPs approach, Pernod Ricard launched an assessment questionnaire with its HR network in line with its Human Rights policy and focusing on its own employees and internal practices. In addition, an external country-level screening and mapping of potential Human Rights risks was conducted. The top priorities identified by affiliates were Health & Safety and Discrimination, Diversity & Inclusion demonstrating alignment with the increased efforts by the Group in developing roadmaps in these areas. In FY22, the Group intends to extend its impact assessment beyond its own operations, covering the whole value chain to identify salient Human Rights issues and prioritize action. Pernod Ricard will also increase internal communication and best practices sharing of Health & Safety and Discrimination, Diversity and Inclusion efforts and roadmaps. Starting with its agricultural supply chains, Pernod Ricard mapped its different terroirs to assess environmental and social risks that may be present on these terroirs, and finally implement eventually sustainability programmes. Fifty-nine terroirs have been identified as strategic priorities in the framework of the action plan since they represent 94% of annual purchases (by spend) and supply key or iconic raw materials. Fifty-five of these fifty-nine terroirs have been subject to a full risk mapping analysis: 25 were assessed with a high-risk level, 16 with a medium risk level and 14 were judged at low risk. Water availability and water pollution have been identified several times (25 and 16 times respectively) as potential risks.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
Optional commentPlease refer to our Global Environmental policy and our supplier standards for more information. These documents are publicly available on our website.1.1. For each environmental policy, is it:
Optional commentOur global environmental policy is publicly available on our website, following this link: https://www.pernod-ricard.com/sites/default/files/2021-08/Pernod-Ricard-Global-Environmental-Policy.pdf It has been developed involving internal experts on environmental issues (such as the Sustainable Performance Team, S&R Team and affiliates environmental experts)Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
Optional commentOur CSR Roadmap 'Good Times from a Good Place' set up environmental targets. These are closely monitored and progress in achieving them is followed closely on an annual basis at least.4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
Optional commentWe publish our annual CSR performance on KPIs and regarding our main CSR risks in our Universal Registration Document - see attached, in Chapter 3. All the audited/verified indicators are listed in the Statutory Audit report at the end of Chapter 3 of our Universal Registration Document. Currently, all indicators are either on track/on plan and should be achieved on time. We also answer external questionnaires such as CDP Climate and CDP Water.5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Optional commentAs mentioned in our Universal Registration Document 2020-2021, one environmental incident was reported to local authorities. It concerns one accidental spillage modifying the biological process of the treatment plant and resulting in COD and pH exceeding legal limits, in Spain.Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
Optional commentScope 1: 265819 tCO2e Scope 2: 29178 tCO2e Scope 3: 2887407 tCO2e Please refer to our 2020-2021 Universal Registration Document for more information6.1. Which Scope 3 categories are included in the organization’s scope 3 emissions calculation?
Optional commentPurchased goods & services category includes all our dry goods, wet goods and promotional items.7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
Optional commentEU Taxonomy works are currently conducted for future publications.8. Has the organization acted to support climate change adaptation and resilience?
Optional commentFor more information, please refer to our Universal Registration Document 2020-2021 - TCFD alignment table and information are disclosed from p118 to 122/123Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Optional comment14% of total energy consumption.Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Optional commentEU Taxonomy works are currently conducted for future publications. It should also be underlined that our revenue mainly comes from the manufacture of beverages, which is currently not defined and covered by the EU Taxonomy.Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
Optional commentRainwater is included in surface water data.13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Sector-specific: Forest, biodiversity, and land use
14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).
Optional commentPernod Ricard does not consider the number of sites but the number of terroir instead. It refers to a specific area, a land, a region and its typicity from a climate and pedology perspective. A terroir is unique also because of the know-how of the people and the communities who work and live there. Considering that terroir means the supply of one agricultural raw material from a specific location, and knowing that our owned sites correspond to vineyards and agave fields, the 990 hectares reported correspond to agave terroirs only. Not all the 990 hectares reported are in or adjacent to protected areas and/or key biodiversity areas (KBA), but more precise information is not available due to the current granularity of our reporting.15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?
Optional commentThis information is required for the CDP Forest questionnaire, for which Pernod Ricard is not involved.16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?
Optional commentFor Pernod Ricard, regenerative agriculture can be considered as a “nature-based solution” to mitigate climate change, protect ecosystems and biodiversity, restore the soil and improve the livelihoods of farmers. Therefore, it englobes many different aspects. Regenerative agriculture is a global approach which looks at the system as a whole in order to enrich soil life and its natural fertility, improve water retention capacity, and protect and enhance biodiversity. In the long term, regenerative agriculture improves the vitality of plants, maximises carbon storage in the soil, ensures a high-quality harvest and stabilises yields. The terroirs will thereby be more resilient in the face of the effects of climate change, and will achieve a sustainable improvement in the livelihoods of farming communities. Pernod Ricard aims to develop regenerative agriculture and natural ecosystem regeneration.Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
Our progress (please refer to our 2020-2021 Universal Registration Document for more information): - 86% of our agricultural raw materials (annual purchases) were covered by mapping, started with priority terroirs this year. The aims of the mapping are: to map the different terroirs to reach full traceability, to assess environmental and social risks that may be present on these terroirs, and finally, implement eventually sustainability programmes. A full risk mapping has been conducted for 93% of priority terroirs (55/59). - Regenerative agriculture pilot programmes have been launched and biodiversity programmes are being implemented in our direct affiliates. For example, following a complete diagnosis of the two French terroirs, Martell cognac and Mumm and Perrier-Jouët champagnes, set up a pilot programme to explore three main areas: soil life, plant health and nutrition, and landscape management. Various trials are implemented to test combinations of cover-crops, develop grape varieties resistant to climate constraints, or even implement specific technologies or machines. Another example would be in the south of France, where Irish Distillers source their maize: the Group has enrolled with 27 farmers in the regenerative index measurement to identify their areas of progress and transform their practices, such as no or low tillage. - Our carbon reduction targets are validated by the SBTi and we launched in 2022 our first Sustainability-linked bond in relation to these targets, in addition to water-related ones. - Since 2010, we've reduced our carbon emissions by 17.5% in absolute value within our own operations. Within our own operations, we are turning to new technologies and alternative energies, procuring renewable electricity and looking at neutralising residual emissions through projects to reduce or capture carbon emissions. We are also working with our supply chain to help reduce our overall carbon footprint linked to the procurement of packaging and agricultural materials as well as transportation. Beyond our business, we have become partners of the Net Zero Pubs & Bars initiatives, supporting UK pubs on their journey to net-zero. - In FY20, production sites have identified water reduction opportunities based on best available technologies per activity (distillation, wineries, bottling…). This will feed into defining water use excellence targets for each site. Moreover, in FY20, 53.2% of the total water used in high-risk locations has been replenished - In FY21, Pernod Ricard built “EcoPack” tool assessing conformity to the internal sustainable packaging guidelines. This tool will measure the percentage of recyclable packaging as well as projects demonstrating impact reduction when it will be completed by all our brands (expected FY23). - All single use plastic promotional materials have been banned. Next steps: - We aim to develop regenerative agriculture and continue the mapping of our terroir to provide effective mitigation plans for terroirs at risk. We also aim to certify all our key raw materials against recognized sustainability standards. - We plan to adapt and transform our production sites and distilleries to improve our environmental footprint and enhance our production processes through technological enhancements. - Pernod Ricard will identify wastewater treatment opportunities and engage research on innovative waste treatment solutions with the Paul Ricard Oceanographic Institute. - Regarding packaging, the Group aims to demonstrate an impact reduction of new projects thanks to the Ecopack tool. Based on the 5 Rs model described in our 2020-2021 Universal Registration Document, we aim to review our packaging following our guidelines, to improve it and make it more sustainable.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
Optional commentIntegrity, and a zero-tolerance policy against corruption and all related misconducts have long been part of Pernod Ricard’s core values. Pernod Ricard has put in place several rules for employees and other stakeholders, including a Code of Business Conduct, an anti-bribery policy, internal control principles, a whistleblowing policy, a prior verification policy and a gift & hospitality policy. All those measures are detailed in our 2020-21 URD on p133. The anti-corruption program is continually re-assessed and improved. For example: in 2022, we updated our corruption risk mapping (we consolidated all the local risk maps, and build an updated new global corruption risk map).2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Optional commentInformation on our whistleblowing system is also available on our website: https://secure.ethicspoint.eu/domain/media/en/gui/104594/index.html Information is also publicly available in our Code of Business Conduct: https://www.pernod-ricard.com/sites/default/files/inline-files/PR%20Code%20of%20Business%20Conduct%20-%20ENGLISH%20Version%20-%20June%202022%20_0.pdf A specific whistleblowing procedure is available internally to employees.Prevention
3. Who receives training on anti-corruption and integrity?
Optional commentIn 2019, we had a worldwide training campaign on our online training MOOC aimed at raising employees’ awareness on our Code of Business Conduct themes, including corruption. We successfully reached more than 92% completion rate worldwide for all employees who have a company electronic device. Based on the results of the 2019 corruption risks map and our professional expertise, we defined two categories of employees: most exposed / standard exposure and assigned the most exposed functions to an advanced version of our MOOC. The others had to complete the basic level. In 2020, we made this MOOC a mandatory step in the induction path of our new employees and trainees.3.1. How often is such training provided?
Optional commentThe online training MOOC has been designed based on the Code of Business Conduct and associated policies. It remains open to all employees at any time and has been made as part of the induction process for new employees, trainees and apprentices. For some elements of compliance local affiliates provide face to face training as well on a periodic basis.4. Does the company monitor its anti-corruption compliance programme?
Optional commentPernod Ricard monitors its anti-corruption compliance programme continuously. Our internal audit protocols include questions about our compliance programme. In addition, each affiliate is required to report annually against certain requirements including compliance. We also report to our external auditors every year on our compliance program, key challenges and innovations over the period.Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
Optional commentAppropriate measures are decided upon depending on the seriousness of the breach and in compliance with local labour law and data privacy rules.7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
MOOC: training for employees on the Code of Business Conduct. With a “learning by doing” approach, a new mandatory MOOC was kicked off in 2019 to train employees on our updated Code of Business Conduct. This new training was successfully completed by 92% of the mandatory target population during the first campaign (i.e. all employees with a company-issued electronic device). Since then, the MOOC is mandatory as part of the onboarding pack for new employees and completion is monitored. “Gifted!”: the Group’s app to declare and seek approval to give or receive gifts and hospitalities in accordance with the provisions of our Gifts & Hospitality policies. The App has been revisited recently and is accessible on all of our electronic devices. Whistleblower system: Pernod Ricard conducts dedicated workshops with Human Resources Directors and with the legal and compliance network to manage whistleblowing cases and conduct investigations. The Group also runs global communication campaigns to increase awareness and improve employee understanding on what can be reported and how alerts are being processed. Partner Up: In 2020, our global due diligence tool, Partner Up, has been rolled out in the Group together with the underlying Global Due Diligence Procedure. The Partner Up tool is a digital platform which allows, before to sign on a new contract, to quickly and efficiently check that this third party does not raise any overwhelming compliance red flag. The purpose of the Due Diligence procedure that is performed in practice in the Partner Up tool, is to qualify the third party’s risk profile as low, medium or high and to decide on any necessary safeguard that would need to be implemented, in order to allow the deal while protecting the Group.