Our Model: 4 pillars and 8 key commitments
Sustainability and Responsibility is part of our growth model being one of our 4 essentials and embedded in our 3 Y strategic plan plan Transform & Accelerate. It is not new for Pernod Ricard, it’s been part of our DNA since our inception.. Back in 1966 our founder Paul Ricard started the Paul Ricard Oceanographic Institute, and today it is still leading the charge for ocean preservation.
Our affiliates and brands have been doing a lot of great work globally in addressing environmental and social issues and we have made strong progress on our 2020 environmental roadmap. In the last 8 years, 93% of our production facilities have been certified ISO 14001 and 95% of our vineyards are certified according to environmental standards. In addition, we have reduced its water consumption per litre of alcohol by 20%, our carbon emissions by 30% per unit of production and waste by 9,505 tons for a total of 748 tons to landfill.
In 2012, Pernod Ricard was one of 12 leading global producers of beer, wine, and spirits to launch five new commitments to reduce harmful drinking, that were implemented over a period of 5 years as from 2013. Together with our industry partners, we committed to reduce underage drinking, strengthen and expand marketing codes of practice, provide consumer information and responsible product innovation, reduce drink driving, and enlist the support of retailers to reduce harmful drinking. Our performance was tracked annually and reported on our Smart Barometer.
For us today, Sustainability and Responsibility (S&R) is based on four key pillars that address all aspects of our production, from grain to glass, with clear 2030 objectives supporting the United Nations Sustainable Development Goals (see the full list of SDGs here). With our 2030 S&R roadmap we will build on our past successes to ambitiously push our business further, using inclusive partnerships that bring shared value to all. We believe that there can be no conviviality with excess and strive to be sustainable and responsible at every step of our production – from grain to glass.
Terroir means earth or soil in French, the birthplace from which all our products take their characters from. Across our business, we source our natural ingredients from over 250,000 hectares of land and so we are committed to nurturing every terroir and its biodiversity, responding to the challenges of climate change to ensure quality ingredients now and for generations to come. We are very proud that our brands are so deeply rooted in their countries of origin and play such an important role in the local communities where they are created.
This pillar focuses on our natural ingredients, the biodiversity of the areas they come from and ensuring they are sourced sustainably. It seeks to address sustainability issues in regions where Pernod Ricard’s natural ingredients come from and is supporting SDG 15: Life on Land and SDG 13: Climate Change.
Our key commitments in this pillar are:
1. Biodiversity: by 2030, 100% of our global affiliates will have a strategic biodiversity project addressing the most pressing local biodiversity issues.
2. Regenerative agriculture: by 2025, we will develop regenerative agriculture pilot schemes within our owned vineyards in 8 wine regions - Argentina, California, Cognac, Champagne, Spain, Australia, New Zealand and China - to mimic natural processes to improve the quality of top soil, watersheds and ecosystems. By 2030, we will then partner with over 5,000 farmers to share this knowledge further.
In addition to these commitments, we are also addressing climate change from agricultural production using Science Based Targets, identifying and certifying all our key raw materials and creating plans to address localized sustainability issues (water scarcity, pesticide use, etc) in each of the regions our ingredients are sourced from.
These commitments build on the great initiatives and achievements by our affiliates and brands globally:
Perrier-Jouët and G.H Mumm have both been awarded the highest sustainable viticulture and HEV (High environmental value) certifications for taking care of the environment, conservation of the landscapes and biodiversity.
At Absolut, which sets the gold standard for trailblazing sustainable vodka, the Co2 neutral plant harnesses all its precious ingredients from a radius of 100 kilometres.
Campo Viejo, our winery in Rioja, has introduced a natural form of pest control called ‘sexual confusion’, using pheromones rather than pesticides to stop the male moth from mating and destroying the vines.
In New Zealand, our Brancott Estate winery has partnered with the Marlborough Falcon Trust to help conserve and protect New Zealand’s most endangered bird of prey – the Karearea falcon. This majestic bird of prey has proved to be an invaluable resource in the vineyard, helping to deter other birds from damaging the grape crop before the harvest.
At our Glenlivet whisky distillery, replacement of heavy fuel with natural gas has reduced the site’s direct CO2 emissions by -30% per unit of pure alcohol produced.
Our Ricard Plantes Fraiches is made from plants cultivated in the South of France with sustainable agricultural practices and distilled within 24 hours of harvest. This product embodies a truly localized approach for its ingredients sourcing and impact on local biodiversity.
People have been and always will be at the heart of everything we do at Pernod Ricard and the foundation of our collective spirit as "Créateurs de Convivialité" – sharing, warmth, care and respect for all. We promote diversity and inclusion throughout our business and work with our suppliers to create shared value in our supply chain. Learn more about our CSR (Corporate Social Responsibility) supplier commitment here.
Contributing to the SDG 8: Decent Work and Economic Growth and SDG 5: Gender Equality, this pillar is all about respect; respect for everyone in our marketing, respect for all those we work with across our supply chain and respect for our 18,900 employees located across the globe – increasing employee attraction, lowering supply chain risks and meeting rising consumer expectations around transparency.
Our key commitments in this pillar are:
3. Equality and future leadership - by 2022, we will ensure equal pay across the business, and by 2030, our top management team will be gender balanced. In addition to which, by 2030, 100% of employees will have received future-fit training at least every 3 years to develop new skills.
4.Shared knowledge and learning - by 2030, we will train 10,000 bartenders on the bar world of tomorrow to host consumers in a more sustainable way including being anti-waste and plastic-free.
This pillar also sets out to embed a United Nations human rights approach, using the UN Guiding Principles on Human Rights, across our business, strengthening our responsible procurement processes and challenge our marketing communications to be more inclusive and break stereotypes.
Across our business, we have many examples that value and respect all those we work with:
Our Absolut vodka and Altos tequila brands are leading the charge in building partnerships with bartenders for sustainable bartending. Altos has developed the Tahona Society Collective Spirit, a bartending competition focused on encouraging bartenders to be more socially and environmentally sustainable. The winners of the competition can develop their projects to push the industry into this more sustainable direction.
Absolut has recently launched the Green Hustle, a program dedicated to helping bartenders be more sustainable with an open-source platform filled with low-waste recipes, sustainable tips and other tools to help the bartending community.
Our annual Responsib’ALL Day, where all our 18,900 employees worldwide engage in community projects, is another prime example of how we engage with our local communities and work together to reach shared goals. The day is directly linked to the UN SDGs, giving yet greater meaning and weight to its impact.
Each year our Chivas Venture competition supports the world’s best social startups with $1 million in funding and expert coaching. Candidates from all over the world participate with their innovative ideas to make the world more socially inclusive, with a panel of expert judges to determine the winners.
MMPJ (Martell Mumm Perrier-Jouët) have partnerships with over 2,000 wine growers in the Champagne and Cognac regions of France – many dating back generations. Our Martell distillery encourages growers to use environmentally friendly products and supply complete data on the traceability of their production. The brand is also looking at innovative ways to make grapes most resistant to climate change, knowledge that can also be shared with the winegrowing community.
We understand the huge pressure our world of finite resources is under pressure and intend to do our part in decreasing this pressure through a circular mindset. Minimizing waste at every step while imagining new production ways that optimise and help preserve natural resources.
Traditionally, society has been based on a linear model of consumption – we buy, use, dispose – this single-use consumption has had a devastating impact on our planet, the plastics problem alone has wreaked havoc on our oceans. Circular models focus on reusing, reducing and recycling so that we minimize the waste and ultimately the impact we make on the environment.
Linked with SDG 12: Responsible Consumption and Production and SDG 14: Life Below Water, our goal is to move towards more circular models throughout our business, from the packaging we use, to the promotional items we produce and the way we distribute our products so that we minimize our carbon footprint and preserve water.
Our key commitments in this pillar are:
5. Packaging and waste: by 2025 we will ban all promotional items made from single-use plastic and 100% of our packaging will be recyclable, compostable, reusable or biobased.
In addition to which, by 2030 we will pilot 5 new circular ways of distributing wine & spirits and help increase recycling rates in top 10 largest markets with low recycling levels.
We are proud a signatory of the Ellen MacArthur foundation’s New Plastics Economy, where we can find solutions to common problems together with other companies and apply these learning to our own business.
6. Water balance and carbon-footprint: by 2030, we aim to be water balanced in all high-risk watersheds, replenishing 100% of water consumption from production sites. In relation to carbon emissions, we commit to reducing the overall intensity of our carbon footprint by 50% by 2030 in line with the Science-Based Targets (SBTs) initiative.
We are also committed to moving towards 100% renewable electricity by 2025, incorporating eco-friendly design of our products throughout the business, certification, recycled content and finding innovative ways to reuse waste water.
Absolut vodka is a great example when it comes to circularity. It is the world’s first carbon neutral distillery, deploying many innovative practices to move towards circular production and minimizing waste. This also includes food waste – 99% of organic by-products are recycled to create products such as animal feed and biogas. This stillage is used to feed 250,000 pigs and 40,000 cows every day.
Our other circular stars include: Plymouth Gin, where the distillery is powered by 100% renewable hydropower and the botanical waste is transformed into sustainable energy. At Altos Tequila 98% of all organic waste is used to fertilise new agave plants. Jameson, our 300-year-old whisky marque meets the highest environmental standards with a mission to produce whisky with a ‘light footprint and pure, unsullied raw ingredients’.
In Pernod Ricard India, the 4Rs are used to address water consumption: reduction, reuse, recycling and recovery. The site has built 13 facilities for rainwater collection and storage, 13 dams, 40 recharge wells and 16 dredging projects corresponding to 365 million litres of water, equivalent to two years of water consumption for all Indian sites. All these actions have led to a decrease in water consumption by 36% since 2010.
Our products bring people together and serve a valuable role in society. However, we acknowledge that alcohol can be misused, and that inappropriate consumption of alcohol can cause serious problems to individuals and our communities. We believe that we have a role to play to support SDG 3 (Health and Wellbeing) and to prevent and reduce harmful use of alcohol. We fight alcohol misuse in society by taking action on harmful drinking - engaging with our stakeholders for real change and by continuously strengthening and expanding our responsible marketing practices
We know that addressing alcohol abuse cannot be done alone, and partnerships with other industry members, governments and local communities are necessary for success. This is why we have linked this pillar with SDG 17(Partnerships for the Goals) – positive change can only be reached in unison with others, with one collective voice.
Our key commitments in this pillar are:
7. Alcohol misuse: by 2030, each and every affiliate of Pernod Ricard across the World will have at least one program in partnership, at scale and evaluated, to fight alcohol misuse.
8. Responsible Party: by 2030, Pernod Ricard will expand its Responsible Party program globally to reach at least 1 million young adults. Responsible Party was created 10 years ago in partnership with the Erasmus Student Network to raise students’ awareness about responsible consumption, and has reached 400,000 students in Europe since.
We are also committed to ensure that all advertising and marketing campaigns are prepared with a due sense of social responsibility, and in particular we want to protect minors from all our on-line and off-line campaigns. All our campaigns - digital or print - must comply with our Code for Commercial Communications and be validated by our Responsible Marketing Panel which was created in 2007. In September 2018, together with other spirits, wine and beer producers, Pernod Ricard entered into a partnership with four major social media platforms, joining forces on responsible marketing, consumer choice and minors’ protection.
We believe that information is key in making the right choices. We want all our employees to be our responsible drinking ambassadors. We want all our consumers to receive the highest quality information regarding our products, the ingredients we use, their nutritional values and how to enjoy them responsibly.
Our Group has engaged in many programs to combat alcohol misuse across our affiliates.
Codigos Responsables programme is run by our affiliates in Argentina and Uruguay together with local retailers to prevent the sale of alcohol to minors: each time a cashier scans the barcode of any of our products, a responsible selling message pops up, reminding to “always ask for ID, do not sell to minors”.
Responsible Party is Pernod Ricard’s flagship responsible drinking programme. We partner with Erasmus Student Network since 2009 to tackle binge drinking amongst exchange students. The programme has reached over 400 000 exchange students so far in 32 European countries. Our Responsible Party crew participates to the parties, distribute water, and interact with students, to raise awareness about the dangers of excessive drinking and reduce harm during the parties.
In Sweden, the Prata Om Alkohol program (Talk about Alcohol) has been bringing the industry, schools and parents together since 2006 to raise awareness among middle-school pupils about the risks of excessive alcohol consumption and postponing alcohol debuts, reaching more than 620 000 teenagers. Pernod Ricard participates to similar programmes in Finland, North America, and also Mexico and South Africa.
Read more about our approach to Read more about our approach to Responsible Drinking and Responsible Marketing here: Code for Commercial Communications , Our Smart Barometer
United Nation’s Sustainable Development Goals (SDGs)
In addition to the 8 SDGs that we have included in our 2030 Sustainability & Responsibility roadmap (the SDGs where our business could make greatest contributions to), our production activities also contribute to 6 other SGDs for a total of 14 across production.