Pernod Ricard

Sustainable development strategy
Pernod Ricard defines its priorities through a risk assessment which is then further developed – notably thanks to a stakeholder consultation. The company discloses a road map focused on four key pillars: nurturing terroir, valuing people, circular making, responsible hosting. These pillars cover all the benchmark measurement areas. Time-bound targets have also been established for the company’s most relevant topics, and the company reports progress against them via its integrated report and universal registration document.

No leading practices were found for the company in the environment measurement area.

No leading practices were found for the company in the nutrition measurement area.

No leading practices were found for the company in the social inclusion measurement area.

Governance and accountability for sustainable development
The company discloses that its decision-making process and oversight responsibilities for its sustainability strategy lie with its board of directors. Furthermore, the company discloses that the remuneration of its highest governance body includes non-financial criteria related to corporate social responsibility. However, there is room for Pernod Ricard to enhance its reporting by demonstrating the reward system for its highest governance body is linked to sustainability performance across the environment, nutrition and social inclusion measurement areas.

Stakeholder engagement
While Pernod Ricard mentions stakeholders throughout its reporting, as well as their involvement in company strategy, it provides no evidence of a stakeholder engagement process. The company does not disclose stakeholder engagement activities, including how it selects the stakeholders, nor an overview of the topics discussed or their outcomes.

Scope 1, 2 and 3 greenhouse gas emissions
Pernod Ricard discloses a time-bound target to reduce by 30% its absolute carbon emissions at production sites by 2030. It reports progress against the target, disclosing quantitative reductions in its scope 1 and 2 greenhouse gas (GHG) emissions as well as giving details of its relevant categories for carbon footprint. However, while the target is aligned with a 2-degree trajectory, there is an opportunity for the company to demonstrate further leadership through external verification of the target and by showing it is aligned with a 1.5-degree trajectory. Regarding scope 3 emissions, Pernod Ricard has committed to reducing the intensity of its scope 3 carbon footprint by 50% by 2030. The target is in line with a 2-degree trajectory, but the company has yet to disclose its progress.

Soil health and agrobiodiversity
Pernod Ricard states that ‘by 2025, we will develop regenerative agriculture pilot schemes within our owned vineyards in eight wine regions to mimic natural processes to improve the quality of topsoil, watersheds and ecosystems’. While the company has yet to report progress against the target, it discloses that 5,602 hectares of its own vineyards are currently under regenerative agriculture. However, there is room for Pernod Ricard to enhance its performance by disclosing the percentage of sustainably sourced products from its suppliers.

Water use
The company discloses a target to be water balanced in all high-risk watersheds, replenishing 100% of water consumption from its production site by 2030. However, there is an opportunity for Pernod Ricard to improve its disclosure by sharing information on water stress not only in its own operations but also by engaging with its supply chain, particularly in terms of water-stressed areas.

Food loss and waste
While the company is addressing food loss and waste in its own operations by creating by-products with leftovers from its processes, for example animal feed, biogas and farm compost, it has an opportunity to strengthen its commitment by setting targets to reduce food loss and waste as well as disclosing quantitative data around its reduction, across its own operations and supply chain.

Availability of healthy foods
Although the company reports that products with low alcohol or low sugar content represent an opportunity for younger generations, the company does not provide evidence of improving the nutritional quality of its products and of proportionally increasing the sales of healthy and nutritious foods.

Responsible marketing
Pernod Ricard states it is committed to responsible marketing, as demonstrated by its code for commercial communications, which aims to ensure that the company’s commercial communications, in particular, do not encourage irresponsible consumption. However, the company does not disclose its budget for responsible marketing, nor set a target for it.

Food safety
While the company discloses compliance with national regulations and/or the Codex General Principles of Food Hygiene, it has an opportunity to strengthen its commitment by disclosing the percentages of its own operations that are certified to a food safety scheme or certification programme recognised by the Global Food Safety Initiative or other widely recognised (industry-specific) certification.

Child and forced labour
While the company commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place. Regarding forced labour, the company commits not to use forced labour in its operations and requires its suppliers to adhere to the same standard. It also commits to respecting workers’ rights to collective bargaining and freedom of association in its own operations and supply chain. It has an opportunity to disclose a commitment that prohibits any form of intimidation of workers seeking to exercise these rights in its own operations and supply chain.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Health and safety of vulnerable groups
The company does not disclose that it specifically recognises the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers.

Pernod Ricard commits to respecting human rights and the ILO core labour rights, adhering to internationally recognised standards across its global operations and value chain. The company has established a process to identify and assess its most salient risks regarding human rights with a road map towards 2025. However, the outcomes of this process are unclear and not enough information is yet available. The company has identified stakeholders whose human rights are potentially or currently impacted by its operations and has a grievance mechanism accessible to both internal and external stakeholders.

Pernod Ricard publicly commits to respecting the health and safety of its own workers and those in its supply chain. However, a commitment to gender equality across its value chain is less clear, and the company does not disclose a plan to incorporate living wages into its remuneration practices. While Pernod Ricard discloses some information regarding working hours, it does not publicly state workers shall not be required to work more than the regular and overtime hours specified for its workers. Although the company discloses some performance information on decent work topics, it could improve its score by providing more detailed information regarding health and safety, gender equality and women’s empowerment and collective bargaining.

Pernod Ricard publicly commits to protecting personal data and has a privacy statement on how data might be used. It also discloses its global tax strategy and payments. However, it does not disclose oversight responsibilities or an accountability structure for compliance with its policies in this regard. Pernod Ricard discloses mechanisms to address bribery and corruption, including internal control and grievance tools throughout its value chain. While it also discloses some information related to its lobbying and political engagement, no publicly accessible policy is available, and the data that there is does not cover the value chain in its entirety.