Pernod Ricard sets out sustainability goals to 2030
Luxury spirits giant Pernod Ricard has doubled down on its commitment to sustainable business, releasing its 2030 Sustainability and Responsibility roadmap. This vision plays a crucial part in Pernod Ricard’s brand – the company is appealing to millennial drinkers with its premium spirits, but younger consumers are as interested in social responsibility and ethical commitments as they are products.
Pernod Ricard’s share price has risen by 13% so far this year
Source: Yahoo Finance
In a move that may sound surprising to some but is sure to resonate with the younger generations’ values, one of Pernod Ricard’s stated goals is “accelerating the fight against alcohol misuse.” A benefit of the trend towards premium drinks is that companies are no longer dependent on selling more and more alcohol – but rather, better and better alcohol. Millennials are happy to pay through the nose, provided they get something worth the money.
Pernod Ricard’s Sustainability roadmap includes four areas, with two goals in each: nurturing terroir will see the group ensuring that 100% of its global affiliates have a “strategic biodiversity” project. It will also see Pernod Ricard commit to “regenerative agriculture” with pilot vineyards in eight wine regions by 2025 (Argentina, California, Cognac, Champagne, Spain, Australia, New Zealand and China).
Valuing people will see Pernod Ricard deliver equal pay by 2022 and gender-balanced management teams at the top by 2030. The company will also work to train 10,000 bartenders to host consumers in “a more sustainable way”, including being anti-waste and plastic-free.
Under the heading circular making, Pernod Ricard has promised to help preserve natural resources. By 2025, the company will have banned all promotional items made of single-use plastic, and 100% of its packaging will be “recyclable, compostable, reusable or bio-based.” The company will also have piloted five new “circular” ways of distributing wine. Lastly in this area, Pernod Ricard will aim to be “water balanced” in all high-risk watersheds (such as India and Australia) by 2030. That means it will look to replenish 100% of water consumption from production sites, as well as reduce the “overall intensity” of its carbon footprint by 50%.
The last of Pernod Ricard’s sustainability goals, responsible hosting, focuses on the social impact of the alcohol industry. The company has promised that “each and every” affiliate of Pernod Ricard the world over will have “at least” one program to fight alcohol misuse. Meanwhile, Pernod Ricard will also work to expand its Responsible Party program (which raises awareness among students about responsible alcohol consumption) to “at least one million young adults”
Vanessa Wright, vice president of sustainability & responsibility at Pernod Ricard, said: “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.”
Alexandre Ricard, the company’s chairman and CEO, added: “We are 19,000 ‘créateurs de convivialité’ – passionate hosts but also respectful guests on our planet. Sharing our values, respecting our terroirs and promoting responsible consumption are all conditions for sustainable growth. Yesterday, today and tomorrow, we will continue to create for the long-term.”
Dominion holds Pernod Ricard in its Global Trends Luxury Fund.
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