Pernod Ricard, the second largest producer of wine and spirits in the world, has officially become one of the international companies that have made a commitment to the preservation of the environment, signified by the recent launch of its 2030 Sustainability & Responsibility roadmap. The roadmap, an integral part of the Group’s strategic plan Transform & Accelerate, sets 8 ambitious but concrete targets in line with the United Nations Sustainable Development Goals (SDGs).
Revealed earlier this month at Martell Cognac distillery in France, these commitments will see the Pernod Group take bold next steps in addressing environmental topics, including measures to preserve the terroirs its products come from. The Group is also taking bold steps in addressing social responsibility issues: particularly the fight against alcohol misuse.
As part of the big reveal, a special film that has been shot with 52 proud employees from Pernod Ricard Spain to launch the new strategy.
Sustainability as a company value
Even before the UN initiatives were in place, Pernod Ricard has had sustainability at its heart. The Group’s founder, Paul Ricard, started the Paul Ricard Oceanographic Institute over 50 years ago, which even today leads the charge in ocean preservation.
Vanessa Wright, VP Sustainability & Responsibility of Pernod Ricard, reveals how deeply ingrained the care for the environment is in the Group’s core value system: “We know that our customers have now come to expect our brands to be responsible and respectful of the environment – values that have been at the very heart of our business since its inception. These 2030 commitments provide us with a focused framework across our business in helping to address some of the biggest sustainability issues, so consumers can enjoy our products in a convivial and sustainable way.”
Since 2010, the Group and its brands (Absolut Vodka, Chivas Regal, to name a few), have undertaken many initiatives and been unrelenting towards its 2020 environmental targets. With programs such as the Chivas Venture and the Absolut Elyx’s partnership with Water for People, the Group has demonstrated a united front on environmental issues, with remarkable results.
In the last 8 years, 93% of the production facilities have been certified ISO 14001 and 95% of its vineyards are certified according to environmental standards. In addition, the Group has reduced its water consumption per litre of alcohol by 20%, its carbon emissions by 30% per unit of production and waste by 9,505 tons for a total of 748 tons to landfill.
Last September, during the UN Global Compact Leaders’ Summit 2018 at the UN Headquarters in New York, Pernod Ricard was the only wine & spirits company to be recognized as a Global Compact LEAD company, demonstrating its ongoing commitment to its Ten Principles and to the UN SDGs.
Pernod Ricard’s 8 commitments to sustainability
“We aim to bring Good Times from a Good Place,” says Alexandre Ricard, Chairman and Chief Executive Officer of Pernod Ricard, “by creating genuine moments of sharing and enjoyment for our consumers, whilst at the same time making and selling our products in the right way, recognizing that we are only guests on our planet. Our 18,900 employees are all ‘createurs de convivialité’; we are passionate hosts and respectful guests. Sustainability has been an important part of our past, it is very active in our present and will be a defining factor in shaping our future.”
Building on its past achievements in the area, The Group’s 8 new sustainability and responsibility commitments are built on four key areas – nurturing terroir, valuing people, circular making and responsible hosting. They seek to address material issues facing the Group and the World, such as climate change, human rights and waste. Each pillar includes 2030 goals with measurements to ensure progress is monitored.
In addition to these 8 main commitments, Pernod Ricard has also developed further plans to embed a UN human rights approach across its value chain, address waste water, and move towards fully renewable energy.
Necause every Pernod Ricard product takes its character from the land where it was grown, terrior and the preservation and development of such is at the center of The Group’s environmental efforts. This area of commitment focuses on nurturing every terroir and its biodiversity, responding to the challenges of climate change to ensure quality ingredients now and for generations to come.
By 2030, 100% of the Group aims to have all its global affiliates to maintain a strategic biodiversity project. It also hopes to develop regenerative agriculture pilot projects within its own vineyards in 8 wine regions – Argentina, California, Cognac, Champagne, Spain, Australia, New Zealand and China – mimicking natural processes to improve the quality of top soil, watersheds and ecosystems and then partner with 5,000 farmers to share the techniques that they have learned from the endeavors.
Convivialité is about sharing, warmth, care and respect for people everywhere. This commitment is related to increasing diversity and fairness for all its people and empowering people across its supply chain.
By 2022, the Group will ensure equal pay across the business. By 2030, the top management teams will be gender balanced; in addition to which, by the same year, 100% of The Group’s employees will have received future-fit training at least every 3 years to develop new skills.
The Group also seeks to train 10,000 bartenders on the topic of the “bar world of tomorrow”, teaching them to host consumers in a more sustainable way including being anti-waste and plastic-free.
The world is made of finite resources, under huge pressure. With this in mind, Pernod Ricard is committed to minimizing waste at every step by imagining, producing and distributing its products in ways that optimize and help preserve natural resources.
To begin with, the company confronts packaging and waste issues. By 2025 Pernod Ricard will ban all promotional items made from single-use plastic and 100% of its packaging will be recyclable, compostable, reusable or bio-based. In addition to which, by 2030 the Group will pilot 5 new circular ways of distributing wine & spirits and help increase recycling rates in its top 10 largest markets with low recycling levels.
To deal with the issues of water balance and the Group’s carbon footprint, Pernod Ricard aims to be water balanced in all high-risk watersheds (like India and Australia), by 20130, replenishing 100% of water consumption from production sites. Pernod Ricard will further commit to reducing the overall intensity of its carbon footprint by 50%, in line with the Science-Based Targets (SBTs) initiative.
Wine & Spirits bring people together and serve a valuable role in society. Pernod Ricard renews its commitment against alcohol misuse in society by taking action on harmful drinking pratices and engaging with its stakeholders to espouse real change.
In the spirit of responsibly partying, 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.
In addition to these 8 main commitments, as part of the 2030 roadmap, Pernod Ricard has also developed plans to embed a UN Human Rights approach across its value chain, address waste water and move towards fully renewable electricity.