MASHINIi

PERNOD RICARD.

PER.XETRA | Distilling, rectifying and blending of spirits

Pernod Ricard is a global alcoholic beverage company. It produces and distributes a wide range of spirits and wines, including well-known brands such as Absolut Vodka, Ricard Pastis, Chivas Regal Scotch whisky, Martell cognac, and Jameson Irish whiskey. The company's activities encompass the entire ...Show More

Ethical Profile

Mixed.

Pernod Ricard faces serious allegations in India, including accusations of money laundering and unlawful facilitation of $24 million in corporate guarantees to retailers, leading to a contested $250 million federal tax demand. Its core business of alcoholic beverages inherently conflicts with public health; shares reportedly fell following recommendations for cancer warning labels, and critics point to allegations of an employee alcohol culture. While promoting responsible drinking and offering alcohol-free options, its main revenue comes from products with health risks. The company also faced a confirmed unfair labor practices dispute in South Korea in 2023 and previously conducted animal experiments involving over 1,000 rats before formalizing a policy against animal testing. Environmentally, it has validated SBTi net-zero targets but sources 31% of grapes and 100% of rice from water-stressed areas.

Value Scores

Better Health for All-10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-30
-100100
Kind to Animals-40
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-50
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-40
-100100

Better Health for All

-10

Pernod Ricard's core business is alcoholic beverages, which are linked to significant negative health outcomes, including liver disease, heart disease, and certain cancers, with the U.S. Surgeon General recommending cancer warnings.

1
The company's revenue is predominantly from these products. Internal reports from former employees describe driving under the influence and colleagues exhibiting intoxication, which the company denies, indicating safety and transparency concerns.
2
To mitigate harm, the company runs "Responsible Party" (since 2009
3
) and "Drink More Water" campaigns (launched 3 years ago
4
, reaching over 400 million online and 9 million on-ground by May 2024
5
, targeting 1 billion young adults by 2025
6
). Its alcohol-free portfolio saw 60% volume growth,
7
and counseling is offered for truckers with substance abuse.
8
Digital labels with QR codes providing comprehensive health risk and responsible drinking information are rolling out globally by 2024,
9
covering 100% of some brands since 2024.
10
During the COVID-19 pandemic, Pernod Ricard demonstrated a revolutionary response, producing over 3.5 million liters of pure alcohol
11
and 100 million 50cl units of hand sanitizer globally.
12
It donated 475,000 to 500,000 masks, ventilators, and intensive care beds,
13
and Pernod Ricard India pledged €1.8 billion for healthcare efforts.
14
Through its foundation and partnerships, the company provides free Mobile Medical Units and affordable Primary Healthcare Centers, treating over 1.5 million patients.
15
It supports healthcare workforce capacity by staffing these units and training 300 health workers in Lagos, 4 12 community healthcare workers (with 30 more in training),
16
and 172 undergraduate students in non-communicable diseases.
17
Mental health initiatives include internal employee support, external partnerships like The Burnt Chef Project for training across 9 countries,
18
and programs reaching 250,000 adolescents in mental health and wellbeing,
19
with a goal to impact 10 million women by 2030.
20
Extensive health education includes mandatory e-learning for all employees, MMU programs, and HIV awareness initiatives reaching over 25,000 people.
21
The company's CSR policy benefits diverse marginalized communities.
22
Environmental externalities are addressed by reducing CO2 emissions (e.g., 1.3 million tonnes mitigated by Ambassador-led initiatives, -12% for Scopes 1&2 in FY23
23
), water consumption (-27% since 2020
24
), and eliminating 71 million single-use plastic POS items last year.
25

Fair Money & Economic Opportunity

0

Pernod Ricard is an alcoholic beverage company and does not operate as a financial institution offering lending or deposit services to consumers. Therefore, all KPIs related to financial products, pricing, fees, debt, and lending compliance are not applicable. While the company engages in extensive Corporate Social Responsibility (CSR) initiatives in India

1
, focusing on livelihood generation, skill-building, and empowerment for various underserved groups (e.g., farmers, women, youth, persons with disabilities)
2
, these are social programs and not financial services that would contribute to a 'loan/insurance book' or directly impact customer credit scores or savings growth in the context of financial products. The company's internal diversity and inclusion efforts
3
, while commendable, do not fall under the scope of external financial inclusion for customers.

Fair Pay & Worker Respect

0

In 2019, a Willis Towers Watson survey of 19,000 employees reported 88% were engaged or highly engaged, which was 7 points above the global consumer goods industry benchmark.

1
However, the company has faced substantiated labor violations. In 2023, the Ministry of Employment and Labor confirmed unfair labor practices by Pernod Ricard Korea, including dominating and intervening in union activities, neutralizing the union, and failing to provide a union office.
2
Additionally, Pernod Ricard USA LLC received a $6,697 penalty for a workplace safety or health violation in 2022.
3

Fair Trade & Ethical Sourcing

0

No evidence available to assess PERNOD RICARD on Fair Trade & Ethical Sourcing.

Honest & Fair Business

-30

Pernod Ricard faces significant allegations of unethical business practices in India. Indian antitrust investigators raided Pernod Ricard's office in Telangana state in December 2024, finding the company facilitated anti-competitive agreements, including offering incentive payments to retailers to achieve a 70% market share for its whisky brand.

1
Federal investigators in New Delhi accused Pernod of similar practices, alleging financial support to retailers in exchange for ensuring 35% of stock is Pernod's.
2
An internal investigation by Pernod Ricard India found that top executives violated Delhi's Excise Policy by colluding with alcohol retailers.
3
The Enforcement Directorate accused the company of money laundering, alleging unlawful facilitation of $24 million in corporate guarantees to retailers.
4
Pernod Ricard's brands have been banned from sale in New Delhi, and the company is contesting a $250 million federal tax demand and facing two antitrust cases.
5
These incidents contribute to the company being noted as having a "Highest Controversy Level" by Sustainalytics and an ESG controversy index of 1.3.
6
Despite having an Anti-Bribery Policy, an Anti-Money Laundering Policy, and an Anti-Corruption Policy that applies to all Group companies with zero tolerance for corrupt behavior, these incidents indicate a severe failure in policy enforcement.
7
In contrast, Pernod Ricard has a formal Whistleblower Policy and an ethics alert line, "Speak Up," hosted by an independent company (NAVEX Global).
8
This line is available 24/7 through My Portal and can receive calls in most languages, allowing anonymous disclosures.
9
The company commits to protecting employees who report issues in good faith.
10
Policies for its Winemakers subsidiaries in New Zealand and Australia, last approved May 6, 2021, detail investigation procedures, risk assessment, and protections against retaliation, are compliant with local regulations, and are reviewed biannually.
11
12

Kind to Animals

-40

Pernod Ricard adopted a policy in November 2019 stating it shall not fund, conduct, or commission any animal testing unless explicitly required by law.

1
Prior to this policy, between 1986 and 2010, the company conducted or provided products for animal experiments that used more than 1,000 small mammals, including rats.
2
The company requires its more than 1,600 ingredient suppliers to abide by this same policy, but there is no evidence of the percentage of these suppliers that are actually audited for welfare compliance.
3
Pernod Ricard India Foundation and WWF India are partnering to conserve the Asian elephant in Assam across 150 villages,
4
and the company also partners with WWF to preserve the snow leopard in Altai.
5
However, there is no measurable biodiversity impact or revenue percentage allocated to these initiatives. The company has not taken a public position on animal welfare legislation.

No War, No Weapons

0

No specific, concrete data points were found in the provided articles to assess PER.XETRA against the quantitative thresholds of the 'No War, No Weapons' ethical value KPIs. The articles mention general ethical guidelines, compliance with trade control laws and sanctions, and due diligence processes for third parties and human rights, but they do not provide measurable outcomes, percentages, or frequencies required by the rubric for any of the KPIs.

1

Planet-Friendly Business

-50

Pernod Ricard's total Scope 1, 2, and 3 greenhouse gas emissions for FY24 were 1.796 million tCO₂e.

1
The company's near- and long-term science-based GHG emissions reduction targets have been validated by the Science Based Targets initiative (SBTi) in line with a 1.5°C trajectory, with targets to reduce Scope 1 & 2 emissions by 54% by FY30 and 90% by FY50, and Scope 3 non-FLAG emissions by 25% by FY30 and 90% by FY50.
2
In 2024, 31.49% of total energy consumed was sourced from renewable energy.
3
Water withdrawals were 2,809,390 m³ against an annual revenue of 12,100 EUR, resulting in a water use intensity of 232,181 m³ per $1M revenue.
4
The company valorized 72% of its waste.
5
Capital expenditure aligned with the EU Taxonomy for climate change was 4,850 EUR, and for water was 1,680 EUR.
6
100% of packaging is evaluated using the ASKOR LCA tool.
7
46% of Martell cognacs, 83% of Mumm champagnes, and 87% of Perrier-Jouët champagnes were shipped without gift boxes in 2024, and 100% of Mumm and Perrier-Jouët champagne bottles are made from recycled glass.
8
The company has a net-zero global emissions target by 2050.
9
It commits to no deforestation across its primary deforestation-linked commodities by the end of 2025.
10
843 megaliters of water were withdrawn from water-stressed areas, representing 30% of total water withdrawals.
11
The company aims to reduce its carbon footprint from glass by 20% through an agreement with Ardagh Glass Packaging.
12

Respect for Cultures & Communities

0

No specific, quantitative evidence was found in the provided articles to assess Pernod Ricard against the defined KPIs for 'Respect for Cultures & Communities'. The articles primarily focus on internal diversity and inclusion initiatives (gender representation, ethnicity pay gap), water stewardship, and general supplier standards, rather than metrics related to formal partnerships with indigenous or local community groups, cultural appropriation incidents, cultural impact assessments, local employment ratios, community grievance mechanisms, FPIC participation, cultural preservation investments, or other community-focused metrics.

Safe & Smart Tech

0

Pernod Ricard's Data Privacy Information Policy (October 2024) states that users have rights to access, rectify, erase, restrict processing, and data portability, and can withdraw consent or object to processing.

1
The company collects and processes personal data that is relevant, adequate, not excessive, and strictly necessary for its purposes, and implements an age gate to prevent data collection from individuals under the legal drinking age.
2
Personal data may be kept for periods proportionate to processing and protection, or longer if legally obliged, with duration varying by country.
3
The company's policies are designed to comply with applicable laws, including GDPR, and it will be required to comply with the European Commission’s Corporate Sustainability Reporting Directive (CSRD) from 2025 onwards.
4

Zero Waste & Sustainable Products

-40

Pernod Ricard reports that 99% of its packaging across markets is recyclable.

1
For plastic packaging specifically, 54.9% was reusable, recyclable, or compostable in 2020.
2
The company's post-consumer recycled content in plastic packaging was 13% in 2020, with Absolut Vodka bottles containing over 50% recycled content and Ricard bottles 81%.
3
Pernod Ricard banned all promotional items made from single-use plastic in 2021, avoiding 71 million single plastic items last year.
4
Beefeater London Dry Gin reduced plastic use by 410 tons per year by eliminating PET bottles and switching to an aluminum cap.
5
Pernod Ricard India collects 10% of the glass it uses for packaging from bars and restaurants.
6
The company has implemented circular design principles, including new Sustainable Packaging Guidelines and a web-based assessment tool for eco-design.
7
Waste reduction initiatives include the REVICO program for cognac by-products and the reuse of wine-making by-products in Champagne.
8
A major study was initiated in 2024 to map water consumption at four Martell sites.
9
The company had one minor waste disposal violation in February 2020 related to stormwater permit non-compliance, which was subsequently addressed.
10
Plymouth Gin bottles had their weight reduced by 15%, and Maison Perrier-Jouët's Ecobox is 30% lighter than its predecessor.
11
Pernod Ricard aims for 100% recyclable, reusable, or compostable packaging by 2025 and has a target to reduce water consumption intensity by 20% by FY18.
12
The company provides clear disposal information on all bottles via QR codes.
13

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.