Integrated Annual Report FY24

Chapter 5: Good times from a good place

Carbon reduction initiatives map

Achieving carbon-neutral distillation (Sweden - Scotland - Ireland - USA)

We are reinventing our distilleries around the world to make our operations more sustainable - including building a state-of-the-art, carbon-neutral distillery for Jefferson’s Bourbon in the US. This will be the first of its size in the country to achieve LEED certification - an internationally recognised sustainability framework for healthy, efficient, carbon- and cost-saving environmentally friendly buildings.

We are also in the process of an extensive expansion at Midleton Distillery, Ireland, which will see scope 1 & 2 energy emissions reduced across our distilling operations. The new distillery aims to use breakthrough emissions technology and is the largest-ever investment by an Irish distillery in pursuit of a carbon-reduction ambition.

We are also aiming for carbon-neutral distillation at Chivas Brothers by 2026, and to phase out all fossil fuels at Absolut distillery by 2025.

Reducing carbon emissions from packaging (Singapore - Cuba)

We are promoting circularity in the spirits industry through a significant new partnership with ecoSPIRITS. Our five-year global licensing agreement will see Beefeater London Dry gin, Havana Club rum and Absolut vodka distributed in significantly larger containers - with 4.5 litre packaging replacing traditional 75cl bottles - reducing waste and carbon emissions resulting from the production and transportation of bottles and other secondary packaging.

The partnership follows a successful pilot for the same three Pernod Ricard brands in Singapore, with spirits deployed in an innovative ecoTOTE™ format and dispensed in venues using co-branded SmartPour™ technology. This pilot was instrumental in identifying the practical challenges and opportunities of circular distribution, providing invaluable insights into operational, technological, and sustainability aspects critical for scaling up circular packaging solutions.

We have now introduced this closed- loop system for Havana Club in Cuba, with a dedicated ecoPLANT™ at our distillery in San José de las Lajas.