Pernod Ricard India (PRI) believes that responsible business practices are essential for long-term value creation. Beyond its core operations, PRI actively engages in social and environmental progress, aligning its Corporate Social Responsibility (CSR) initiatives with the UN Sustainable Development Goals (SDGs). Through focused interventions in water stewardship, regenerative agriculture, renewable energy, and community empowerment, the company is driving meaningful change across India.
PRI has achieved significant milestones—replenishing 2.6 times more groundwater than it withdraws, empowering thousands of farmers with sustainable agricultural practices, pioneering India's first trans-youth fellowship program, and transitioning to 98% renewable energy. These initiatives reflect PRI’s commitment to building a more sustainable and inclusive future.
At the forefront of these efforts is Mr. Gagandeep Sethi, Senior Vice President - Integrated Operations, and Sustainability & Responsibility, Pernod Ricard India. With over 25 years of experience in multinational and FMCG companies, Mr. Sethi integrates sustainability into PRI’s core business strategy, overseeing its implementation and impact measurement.
To understand PRI’s approach to sustainability, community engagement, and long-term impact, we spoke with Mr. Sethi. In this conversation, he shares insights into the company’s strategies, challenges, and achievements; highlighting how PRI is setting new benchmarks for corporate responsibility in India.
Continue reading to learn more.
Q&A
Q. Pernod Ricard has achieved impressive water positivity figures. Could you share how these programs are adapted to address the unique water challenges in different regions where you operate, and how you measure the long-term impact on local communities and ecosystems?
A. Our water stewardship approach works on region-specific interventions that ensure our initiatives address each area's unique water challenge. For instance, in water-scarce regions we implement projects that replenish and improve local water availability and quality. In other regions, our focus is on improving water efficiency at our production sites and reducing wastewater impact. We work with local partners who have an expertise in watershed management, including rainwater harvesting and sustainable agricultural practices that conserve water resources.
Since 2019, we've constructed 2,355 water storage and recharge structures while generating a groundwater recharge potential of 4,484 million liters. By replenishing 2.6 times more groundwater than we withdraw, we've implemented our innovative 4R approach (Reduce, Reuse, Recycle, and Recharge) across diverse ecological contexts.
We measure long-term impact through comprehensive metrics including groundwater levels, agricultural productivity, and community water access. We use a combination of data collection and third-party assessments to track the ecological and socio-economic benefits of these initiatives. This includes monitoring water tables, biodiversity, and local community feedback. Overall, our approach is to adapt to local water challenges and create measurable, positive outcomes for both communities and ecosystems.
Q. You support thousands of farmers with regenerative practices. How are you ensuring these practices are not just implemented but also maintained over time, even with potential fluctuations in market prices or other external pressures? How does this contribute to building a more resilient and sustainable agricultural supply chain for Pernod Ricard?
A. Ensuring the long-term sustainability and success of regenerative practices, especially amidst market price fluctuations and external pressures, is crucial. Our farmer support model transcends short-term interventions by embedding resilience into the agricultural ecosystem. We offer training programs that provide expert guidance to farmers, helping them navigate challenges and stay committed to regenerative practices. This includes offering training programs, subsidies, and access to the tools necessary for sustainable farming. We've established 8 Farmer Producer Organizations across 5 states. These FPOs directly support 4,000 small and marginal farmers in almost 150 villages. We've successfully created a sustainable framework that increases agricultural yield by 10-20% while reducing input costs by 15-22%.
Our approach helps farmers diversify beyond agriculture to engage in agroforestry and even value-added products and services to help stabilize their income while maintaining regenerative systems. This includes targeted training through Community Resource Centres, access to mechanized tools via 'Kisan Sansadhan Kendras', and a collaborative model that ensures farmers can withstand market fluctuations. By integrating climate-resilient practices and creating robust local value chains, we're building an agricultural supply chain that is both economically viable and environmentally sustainable.
By focusing on maintaining regenerative practices, Pernod Ricard is not only supporting farmers but also strengthening the agricultural supply chain. It helps ensure that farm livelihoods remain steady and resilient against climate change, resource depletion, and market price fluctuations. Over time, this approach reduces dependency on external inputs like chemical fertilizers and pesticides, improving both environmental and economic resilience.
In short, the focus on ongoing support, market incentives, and community engagement builds a strong, adaptive supply chain that benefits both farmers and Pernod Ricard India, driving long-term sustainability and resilience.
Q. Achieving 98% renewable energy in operations is commendable. What are the next steps in your decarbonization journey? How are you engaging with suppliers and other stakeholders in your value chain to address Scope 3 emissions, and what innovative solutions are you exploring in this space?
A. Our commitment to decarbonization extends far beyond achieving 98% renewable energy. We're strategically targeting a 54% reduction in Scope 1 and 2 emissions by 2030, with ambitious goals of reducing supply chain FLAG and non-FLAG emissions by 30% and 25% respectively.
We're engaging suppliers through collaborative platforms that leverage IoT and AI-driven analytics to track and optimize sustainability metrics. Our innovative approach includes strategic ethanol procurement, transitioning from coal to biomass in distillery operations, and implementing smart manufacturing processes that optimize resource consumption. By pioneering regenerative farming systems across eight wine regions by 2025, we're creating a comprehensive ecosystem approach to emissions reduction.
Q. Empowering women is a significant achievement. How do you ensure these initiatives translate into lasting economic opportunities and real improvements in women's livelihoods and social standing? What are the key challenges you've faced in this work, and how have you adapted your approach?
A. Our women empowerment strategy is a holistic transformation engine. We have helped women access the skills and recourses they need to succeed, empowering 31,546 women. This has been achieved through collaborations with women farmers, producers, and entrepreneurs. For example, we partner with 56 Women Producer Groups to foster innovative microenterprises. A key aspect of our approach is ensuring women’s participation in local networks and decision-making bodies. To that end, we ensure 50% female representation in Water User Committees and 50% board membership in Farmer Producer Organizations.
In Nashik, we've supported women-led projects like tomato polytunnels and flour mills, while in Kanpur, traditional skills have been transformed into sustainable enterprises. By providing comprehensive support, including training, market access, and financial resources, we're not merely creating job opportunities but fundamentally reshaping social dynamics and economic participation.
When engaging with women, especially in rural India, the key challenges we face revolve around deeply ingrained gender biases and cultural norms that limit women’s access to opportunities. For instance, in many areas, women do all the agriculture work, but they may not have control over land or financial resources.
PRI works closely with local communities to change social norms and gender perceptions. We run targeted programs that improve women's access to educational opportunities, livelihoods, participation in sports, etc. We also tailor our support to fit the specific cultural and economic context of each region, ensuring that our interventions are both relevant and respectful of local customs.
Ultimately, by focusing on sustainable, holistic solutions and creating partnerships at every level of society, we ensure that women’s empowerment leads to lasting changes in both economic and social dimensions.
Q. The trans-youth fellowship is a pioneering initiative. How do you measure the transformative impact of this program on the lives of participants beyond just job placements?
A. While our trans-youth fellowship supports over 100 transgender individuals, our measurement goes beyond job placements. We assess transformative impact through comprehensive metrics, that include economic independence, social integration, and personal development. Our approach recognizes that true empowerment goes beyond employment, focusing on holistic skill development, psychological support, and creating pathways for social mobility.
One of the most valuable aspects of the program is the networking opportunities it offers, with both peers and mentors, along with the emotional and social support provided through peer groups and mentorship. Measuring how participants feel more integrated into a supportive community helps assess the social impact of the program.
By providing targeted training and creating inclusive workplace environments, we're challenging systemic barriers and creating meaningful opportunities for transgender individuals to thrive professionally and personally.
Q. How does Pernod Ricard ensure community participation and ownership in its sustainability initiatives? What mechanisms are in place for local communities to provide feedback, influence project direction, and ensure that projects align with their needs and priorities?
A. For sustainability initiatives to be truly impactful and long-lasting, they must be rooted in the needs and priorities of the communities where we operate. To ensure this, we start with a comprehensive needs assessment with community leaders, local stakeholders, and often with the people who will be most affected by the project.
Our programs ensure continued engagement with the local community members, especially the marginalized and underrepresented groups. Any infrastructure assets are handed over to the community and are intended to benefit the communities.
Moreover, feedback loops are put in place through Community Resource Centers (CRCs) that serve as vital interface points between the organization and local communities, facilitating regular dialogue and feedback. These centers function as knowledge hubs where community members actively participate in program planning and implementation.
The effectiveness of this approach is demonstrated through our agricultural initiatives, where 72 Women Farmer Interest Groups provide platforms for female farmers to influence farming programs, resulting in a 10-20% increase in agricultural yield and a 15-22% reduction in input costs.
Our water management initiatives further showcase community-driven implementation. Since 2019, 2,355 water structures have been created through active community consultation. The establishment of 11 Water, Agriculture, and Livelihoods (WAL) programs has benefitted 18,078 community members.
Q. What partnerships does Pernod Ricard have with NGOs, government agencies, or other organizations in implementing its sustainability initiatives? How do these partnerships leverage the expertise and resources of different actors to achieve greater impact?
A. Pernod Ricard maintains strong partnerships with NGOs, government agencies, and industry peers to create an ecosystem for sustainable development.
We partner with mission-based NGOs that have the thematic expertise to design and execute well rounded community programmes. These NGOs act as specialized knowledge partners on community mobilizations, water conservation, community development, and ensure that sustainability initiatives are based on best practices and expert guidance.
We partnered with the National Skill Development Corporation (NSDC) for a livelihood skill training program for trans persons in Mumbai. This collaboration helped train 240 individuals in market-driven courses. We further collaborated with NSDC to facilitate employment opportunities for 50 youth in Japan's hospitality and nursing sectors under the Specified Skilled Worker (SSW) program.
While working with communities, our projects leverage various government programs, such as MGNREGA for water infrastructure development and the Department of Agriculture for promoting sustainable farming and irrigation through Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and Krishi Sewa Kendras.
Our partnership with Haryana’s CMGGA Program drives social innovation across crucial domains like women’s safety, nutrition, skill development, and digital education inclusion. Pernod Ricard India has also established strategic alliances with educational institutions, like TISS for India's first fellowship program for transgender youth.
Q. Can you share specific examples where sustainability initiatives have not only benefited the environment and communities but also driven cost savings, enhanced brand reputation, or created new market opportunities?
A. Aligned with our "Good Times from a Good Place" philosophy, transitioning to 98% renewable energy through co-generation and solar power has reduced our environmental impact and generated significant cost savings. A standout example is our Project Unbox initiative, which eliminated 500 million pieces of permanent mono-cartons annually, resulting in both environmental benefits (7,310 tonnes CO2e reduction) and operational cost efficiencies.
Pernod Ricard India’s water stewardship efforts have created substantial business value through risk mitigation and enhanced community relations. By achieving 2.6X water positivity and constructing 2,355 water storage structures, we've secured our operational continuity while building strong community partnerships. IoT technology and AI-driven analytics for resource monitoring have optimized our production processes, leading to improved efficiency and reduced operational costs.
Our commitment to sustainable agriculture, supporting 10,000 farmers annually, has strengthened our supply chain resilience and ensured quality raw materials. The initiative has also enhanced our brand reputation through demonstrated commitment to farmer welfare. Our transition from coal to biomass in distillery operations has resulted in a 94% reduction in direct carbon emissions, positioning us favorably with ESG-focused investors and environmentally conscious consumers.
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