The group’s main challenges and risks

1. Strategic presentation of the group

THE GROUP’S MAIN NON-FINANCIAL CHALLENGES

Terroirs, People and Time. The Rémy Cointreau Group’s CSR ambition is built around the three key pillars of our signature:

protecting our terroir through sustainable agriculture;
making a commitment to people to protect their ancestral know-how, ensure their well-being within the Group and teach them about the ethics that are so vital for the Group’s credibility. At the same time, pledging to protect all stakeholders, both internal and external, through a policy of responsible consumption;
recognising the value of time, protecting the atmosphere (through our carbon footprint) and water supply as essential resources for our businesses.

Following a materiality assessment in 2016/2017, 10 key Sustainable Development Goals were selected (out of the 17 identified by the United Nations). Based on these SDGs, we have now identified the 10 major challenges facing the Group, the risks associated with these challenges, and the indicators that will enable us to monitor their development in the future. In some cases, the Group has already committed itself by setting targets for improvement.

The targets cover SDGs 6, 8, 12, 13 and 15, which are used as CSR performance criteria to calculate the Executive Committee’s variable remuneration.

SDGS	CHALLENGES	RISKS RELATING TO THE CHALLENGE	RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN)	CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE
Clean water and sanitation	Clean water and sanitation CHALLENGES Clean water and sanitation CHALLENGES Water management	Clean water and sanitation RISKS RELATING TO THE CHALLENGE Clean water and sanitation RISKS RELATING TO THE CHALLENGE Water availability/ Water quality	Clean water and sanitation RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) Clean water and sanitation RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) Water consumption	Clean water and sanitation CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE Clean water and sanitation CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE Operations Director
Decent work and economic growth	Decent work and economic growth CHALLENGES Decent work and economic growth CHALLENGES Employee well-being	Decent work and economic growth RISKS RELATING TO THE CHALLENGE Decent work and economic growth RISKS RELATING TO THE CHALLENGE Absenteeism, turnover, workplace accidents, occupational health,work-related alcohol consumption	Decent work and economic growth RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) Decent work and economic growth RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) Turnover and absenteeism	Decent work and economic growth CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE Decent work and economic growth CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE Human Resources Director
Responsible Consumption and Production	Responsible Consumption and Production CHALLENGES Responsible Consumption and Production CHALLENGES Circular economy and reduction of raw material consumption	Responsible Consumption and Production RISKS RELATING TO THE CHALLENGE Responsible Consumption and Production RISKS RELATING TO THE CHALLENGE Company’s reputation among customers	Responsible Consumption and Production RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) Responsible Consumption and Production RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) EPI (Environmental Performance Index of packaging)	Responsible Consumption and Production CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE Responsible Consumption and Production CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE CEO Liqueurs & Spirits
Climate action	Climate action CHALLENGES Climate action CHALLENGES Contribution to the global effort (2^°C limit) and sustainability of the business	Climate action RISKS RELATING TO THE CHALLENGE Climate action RISKS RELATING TO THE CHALLENGE Changes in regulatory and fiscal framework (carbon tax)	Climate action RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) Climate action RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) CO₂ Emission : significant emissions, by brand, focus on transport/ reduction of CO₂ emissions	Climate action CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE Climate action CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE CEOs of the Americas, EMEA and Asia Pacific regions
Land Life	Land Life CHALLENGES Land Life CHALLENGES Sustainable agriculture: adapting the terroir and protecting biodiversity	Land Life RISKS RELATING TO THE CHALLENGE Land Life RISKS RELATING TO THE CHALLENGE Sustainable production of our agricultural raw materials	Land Life RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) Land Life RISK INDICATORS (QUANTIFIED TARGETS/ PROGRESS PLAN) Percentage of sustainably managed land	Land Life CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE Land Life CHALLENGES RELATED TO THE REMUNERATION OF A MEMBER OF THE EXECUTIVE COMMITTEE CEO House of Rémy Martin and CEO Whisky Business Unit

The remaining members of the Executive Committee are also linked to these targets, with their variable "CSR" component corresponding to the average achievements of the Executive Committee members directly concerned.