Pernod Ricard

Governance and accountability for sustainable development
The company provides evidence of linking performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues.

Sustainable development strategy
The company discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy. Furthermore, it has group-wide targets on key sustainability topics for the most material parts of its value chain and reports consistently against all its targets.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company aims to reduce its scope 1 and 2 greenhouse gas (GHG) emissions by 54% by 2030. Additionally, it has set a time-bound target to lower its scope 3 GHG emissions.

Plastic use and packaging waste
The company is committed to reducing plastic use and transitioning to sustainable packaging. It demonstrates this commitment through its policies and various activities. Additionally, the company discloses quantitative data on both the reduction of plastic use and the implementation of sustainable packaging.

Soil health and agrobiodiversity
The company discloses activities to improve soil health or agrobiodiversity in its production or sourcing practices.

Water withdrawal
The company reports how much water is withdrawn for its own operations in water-stressed areas.

Food safety
The company discloses that 78% of its sites hold ISO 22000/FSSC 22000 certification, with full coverage for all strategic brands, achieving a 100% certification rate in production volume.

Responsible marketing
The company has a responsible marketing policy that covers all media channels, aimed at reducing children exposure to alcohol marketing and limiting the appeal of alcohol marketing. Moreover, the company provides evidence of compliance with its responsible marketing policy for children through third-party auditing.

Forced labour
The company discloses a prohibition to use any recruitment fees and to retain workers’ personal documents or restrict workers’ freedom of movement for its operations.

Land rights
The company has a commitment to respect ownership and use of land and natural resources and related legitimate tenure rights.

Act ethically
The company identifies bribery and corruption risks through qualitative evidence. It also has a policy in place that strictly prohibits bribery and corruption. Furthermore, the company includes anti-bribery and anti-corruption clauses in all its contracts with direct business relationships. Additionally, the company has established a grievance mechanism that allows stakeholders to raise concerns and file complaints specifically related to bribery and corruption.

Provide and promote decent work
The company has a publicly available policy statement in which it commits to respecting the health and safety of workers and expects its business relationships to do so. The company discloses the proportion of its total direct operations workforce for each employee category by race or ethnicity. Additionally, it discloses the proportion of women in its total direct operations workforce for each employee category. The company has 50% women on the board, and it also publicly commits to gender equality and women’s empowerment. Furthermore, it targets to achieve 30% gender balance in its management bodies by 2025 and a 40% gender balance by 2030.

Respect human rights
The company publicly discloses the results of its human rights risk assessments and has a publicly available policy statement expecting suppliers to respect the ILO core labour rights. It also describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations, as well as in its supply chain. Additionally, the company has a publicly available policy statement committing it to respect human rights.

The company discloses its global system for taking action to prevent, mitigate, or remediate salient human rights issues. This includes a description of how its global system applies to its supply chain. Furthermore, the company indicates that it has a human rights grievance mechanism accessible to all workers and external stakeholders who may be adversely impacted by the company.

Governance and accountability for sustainable development
The company has an opportunity to disclose whether its highest governance body has expertise with respect to the company’s most material sustainability topics.

Lobbying and advocacy
While the company discloses its membership in some of trade associations, it has an opportunity to disclose a list of trade associations of which it is a member of for all jurisdictions where it operates. Furthermore, it could provide a clear and detailed framework for assessing the alignment of these trade associations with its sustainability targets and report any (potential) misalignments between the lobbying activities of its trade associations and its sustainability targets.

Stakeholder engagement
The company has an opportunity to disclose an overview of the issues raised by each stakeholder group during its stakeholder engagement activities and to describe its process for engaging with stakeholder groups, beyond its materiality assessment.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company has the opportunity to report progress on its scope 1 and 2 GHG emissions targets and to make an effort to reduce its scope 3 greenhouse gas emissions and show progress compared to a baseline year. Further, it could align its GHG emissions reduction targets with a 1.5-degree trajectory.

Food loss and waste
The company has the chance to disclose its FLW reduction targets and report progress made towards achieving them. Additionally, it has an opportunity to align its FLW reduction goal with SDG12.3, which aims for a 50% reduction by 2030.

Soil health and agrobiodiversity
The company has an opportunity to disclose a target to improve soil health in its production or sourcing practices and report progress against it.

Water withdrawal
The company has the chance to provide quantitative evidence of reductions in water withdrawal throughout its operations. Although it already has a target to reduce water withdrawals, it can also report relevant data or specify the reductions achieved. Similarly, while the company establishes expectations for suppliers to reduce water withdrawal, it can take further steps to engage with them effectively.

Availability of nutritious foods
The company has an opportunity to disclose evidence about its efforts to reduce sugar and calories across its portfolio.

Clear and transparent labelling
The company has an opportunity to make nutritional information more visible to consumers through the adoption of front-of-pack labels and/or any other consumer-facing nutrition label.

Food safety
The company has an opportunity to disclose the percentage of food suppliers certified to a GFSI-recognized food safety scheme.

Child labour
The company has an opportunity to disclose examples of remediation programmes when a case of child labour is found in its operations and to indicate how it is building the capacity of its suppliers to prevent child labour impacts. While the company prohibits suppliers from using child labour, it could require them to have an age-verification system in place.

Forced labour
The company has an opportunity to translate its statements and expectations for suppliers regarding the prohibition of retaining workers’ personal documents and restricting workers’ freedom of movement into policy requirements. Furthermore, it could disclose a prohibition for suppliers to pay recruitment fees or related costs to secure a job. To conclude, the company has an opportunity to indicate how it is building the capacity of its suppliers to prevent forced labour impacts.

Health and safety of vulnerable groups
The company has an opportunity to recognise and assess the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers. Furthermore, it could provide evidence of support activities that improve the health and safety of vulnerable groups.

Land rights
The company could require its business relationships to have a process to identify legitimate tenure rights holders and to negotiate with them to provide adequate compensation.

Living wage
The company has an opportunity to set a target for paying a living wage across its direct suppliers and describe how it determines a living wage for the regions where it sources. Also, it could disclose the percentage of workers across its own operations or suppliers that are paid a living wage.

Act ethically
While the company informs its stakeholders about its lobbying and political engagement strategy, it has the opportunity to further formalize and clarify this approach by creating a public policy document. It could specify that it does not make political contributions. Although the company claims to disclose data on lobby expenditures as required by the French transparency registry and could make its lobbying expenditures accessible. Moreover, the company could disclose that it requires third-party lobbyists to comply with its lobbying and political engagement policy.

Provide and promote decent work
While the company discloses that it monitors the health and safety performance of its business relationships, it has an opportunity to disclose the ways in which it does so. Additionally, the company could disclose a time-bound target for paying all workers a living wage or state that it has achieved paying all workers a living wage. While the company expects its suppliers to compensate workers according to the applicable wage laws, it could disclose if such wage is enough to maintain a decent standard of living for employees of its business relationships and their family.
Furthermore, it could also describe how it determines a living wage for the regions where it operates and how it works to support its suppliers in paying a living wage. It could also consider committing to gender equality and women’s empowerment and disclose related targets, as well as the representation of women on the highest governance body and the ratio of the basic salary, and remuneration of women to men.

Respect human rights
The company has a publicly available policy statement that commits to respecting specific workers’ rights. However, it could also reference all the fundamental rights at work established by the International Labour Organization (ILO). In addition, the company provides information on how it assesses its human rights risks. Nevertheless, it has an opportunity to disclose what it considers to be its most significant human rights issues.