Good morning and good afternoon from whether you are joining us, ladies and gentlemen. This is Julia Massey from Henrika. I'm delighted today to, introduce you to the sustainability and responsibility We hosted today by Vanessa Wright, our VP sustainability and responsibility. We will follow the usual format and take you through a brief presentation and then give the floor to your questions.
I need to say at this point that this call is being, recorded. Over to you, Vanessa.
So, hello. I'm very happy to be here with you all to share the strong progress that we've made on our sustainability and responsibility roadmap, in the last year since we launched it. And also, I think it gives us a great opportunity today to underline the importance and relevance to Pernod Ricard in this strategy and supporting the business during this COVID and post COVID period. As it says here, it's about a future fit strategy, and that's absolutely what we intend it to be. So, I think one of the things we've probably all observed during this period of time, this difficult period of time, is a great connectivity between people, nature, and climate, and the ever increased importance around sustainability.
And just, talking about progress, I'd just like to highlight this picture here actually on the front, which is, shows strong progress. This is the Martell vineyards where we've been planting different crops between the vines. Here you have radishes, oats, and veg, all of which play different roles in absorbing nitrogen and increasing the carbon, contents in the soil and water. The radishes have long vines. So I just wanted to share that picture with you.
So in terms of today and what we'd like to cover with you today, firstly, just a reminder of our 2030 strategy for some of those of you who aren't so familiar, and then a progress by pillar. In the last year or so, we've done a lot of things, I'm very proud to say, and we don't have time to share all of those with you in, in this period of time. A lot of it has been around frameworks and policies and guidelines. We've been making sure that we've got very strong cohesion and consistency globally with all of our affiliates. We now have 80 plus plans from all our affiliates, and they have in place very strong governance.
But as I said, for today, we'd like to really focus on some key actions. Sustainability and responsibility is not new at Pernod Ricard. It's really a strong part of who we are, and it's deeply, embedded in the group and has always been part of, who we are. Our founder Paul Ricard was an early philanthropist, and he cared very deeply about the environment, the communities, and in making sure that the products we produce were done so in a socially responsible way. That continues today with our CEO, Alexandre Kikkar, who is committed to building on that legacy and continuing to embed sustainability into the group.
There's a strong business case, for sustainability. In fact, for us, is business. Firstly, to massive addresses these massive environmental shifts, and this is why our strategy is so linked with the United Nations sustainable development goals, the world's to do list so that we're all working in unity against these, in line with these big global topics. It also supports our corporate priorities. You'll all be aware of our transform and accelerate plan, which was launched in October 2018, and sustainability and responsibility is a key essential of that strategy.
It also matters to our consumers. We're a consumer centric business, and we recognize the topics that the the forefront of their minds around provenance, product quality, less waste, healthier lifestyles. It builds a strong corporate brand. It helps to build a strong reputation for a business. And as I said, for us, it is the business.
And when you look at, our vision of creative or conviviality, the notion of sharing is about conviviality, is about sustainability, and is about responsibility, and is about others. And, also, we believe it strongly, is an opportunity for innovation, for strengthening business practices, and for and processes, and really giving us the opportunity to change the way that we do things. So our strategy is built on four very clear pillars. We had a strategy before. We had an 2020 environmental road map.
And, actually, we made some very strong progress on that. For example, we reduced water, usage by 22% and our carbon emissions by 30, 4%. We also had a lot of, plans in place around responsible consumption, a license to operate, and that's been the case for many years. But what we wanted was a much broader strategy. We wanted a strategy that was fully embedded into our business from grain to glass, and this is how we've spoken about our strategy from the beginning, from grain to glass.
And then we have these four key pillars. Now in building our strategy, we consulted more and liaised with more than 300 people within the organization and also externally, of course. So each of these commitments was linked to consumer needs around some of the topics I mentioned previously, around, of course, the material risks of the business, and also very clearly and strongly linked with the United Nations sustainable development goals. So you have the four, pillars here, which we'll go into a little more detail. We talk about our strategy as being good times from a good place.
So we bring these good times, these moments of conviviality, of bonding, of friendship, of sharing, much of which, unfortunately, we can't do today. And we bring them from a good place. A good place that's the physical good place where our ingredients, where our products come from, the communities, etcetera, but also the emotional place, the way that we behave at Pernod Ricard. So we talk about being passionate hosts and respectful guests. Passionate hosts, the way that we do conviviality, the way that we share, and respectful guests in terms of recognizing that we are only guests on this planet.
So we aspire to create a more convivial world, a world without sex out excess. And I'd like to just share a quick film with you.
Pernod Ricard presents good times from a good place. It's 2030 sustainability and responsibility road map. At Pernod Ricard, we are which is all about sharing, and this is nothing new to us. Our founder, Paul Ricard, was an early philanthropist who valued his people, the environment, and communities. Today's sustainability is fully embedded in our business.
The road map is based on four pillars with strong twenty thirty commitments that support the United Nations' sustainable development goals. Discover our commitments in each of our four pillars. Nurturing terroir. All our products come from nature and take their character from the land where they were grown. To be able to protect these ecosystems, we must first understand where our natural ingredients come from by mapping their origins.
We can then protect these regions by having a biodiversity project in each affiliate by 2030. We will also work with farmers to share this knowledge further, piloting eight projects on regenerative agriculture in our vineyards by 2025 while partnering with 5,000 farmers by 2030. Valuing people. Conviviality is about sharing warmth, care, and respect for people everywhere. So we commit to have an equal pay by 2022.
Gender balanced top management teams and 100% of our employees will be future fit trained at least every three years by 2030. We also commit to working with the bartending community, training 10,000 bartenders on the bar world of tomorrow by 2030. Circular making. We are committed to minimizing waste at every step of our production to help preserve natural resources. In order to do this, we will ensure that a 100% of our packaging is recyclable, compostable, reusable, or bio based by 2025 in addition to having no single use plastic POS by 2025.
We will also be looking into five new ways of distribution for wine and spirits by 2030 and to increase recycling rates in our largest markets. Water use and carbon emissions are vital components of a more circular world. And so we also commit to being 100% water balanced in all high risk areas and a 50% reduction of carbon footprint intensity by 2030, including moving towards fully renewable electricity by 2025. Responsible hosting is all about marketing and selling our products in the right way. We will fight alcohol misuse in society by taking action on harmful drinking and engaging with our stakeholders for real change.
We commit to reaching 1,000,000 young adults through the responsible party program by 2030 in addition to having one program per affiliate to fight alcohol misuse by 2030. We are proud that these ambitions are supported by our 19,000 employees around the world. At Pernod Ricard, we believe there can be no conviviality in excess and strive to be sustainable and responsible at every step. From grain to glass.
So hopefully that gave you a quick, insight into the whole strategy. And just here, can see on the screen the full strategy. And this is really just to illustrate the breadth and scope. I don't intend to go through that. And you can see there that there's two SDGs linked with each of our pillars.
We've made, as I said, strong progress so far. And according to the ratings agencies and the the most credible ratings agencies that you see here, you can see, actually, our scores from last year for CDP and Sustainalytics in particular have, have gone up. And we are the only wine and spirit company out of only one of 36 companies worldwide who have been identified as a lead by UN Global Compact for the progress we're making against the sustainable development goals. So now I'd like to just take you through each of those pillars. And just a quick reminder of, why each of those pillars is important to us.
I won't go through every single one of these targets because I'd like to focus on the progress that we've made. So nurturing terroir hugely important for us at Pernod Ricard. All of our products, come from nature and are deeply rooted in the countries they come from. When you think about Jameson, it's Ireland. Absolute is Sweden.
Havana Club, Cuba, and so on. So they're deeply rooted in the places that they come from. And also, I would say not just the terroir itself, but that's the the broader sense of terroir in terms of community. So we want to make sure that we nurture and protect all of those natural ingredients so that we have high quality products for years to come. So the first sort of that piece is around terroir mapping.
So just so that we know where all our natural ingredients come from, and then we make sure that they're certified according to high sustainability standards. But once we know where they come from, we identify any pressing sustainable issues attached to those areas. For example, there may be a water or a pesticide issue or maybe even a social issue. So that's what we mean also around sustainable agriculture. Also to identify and see how we can reduce, carbon emissions.
And then around more progressive and more visionary regenerative agriculture, we'd like to pilot eight eight eight, schemes in wine in our wine regions to see how we can progress on regenerative agriculture and partner with 5,000 farmers of to share knowledge for the future. Also, biodiversity, recognizing actually 2020 is a hugely important year for biodiversity, and we want to make sure that all our affiliates by 2030 have a strategic biodiversity project in place. So just to give you an example of, one of the brands that's been progressing very strongly in that, I'd like to share with you, Martell. So Martell has been doing a number of different things in this area. The first is around, sustainable sorry, around the partnerships that we have with wine growers.
So over these are 1,200, partnerships that we have. Some of those go back 10 generations. And when you consider that Martell's a 300 year old brand, that's quite extraordinary. So these initiatives are really about innovative techniques, for example, to reduce pesticides, but also other initiatives. We have sustainable viticulture initiatives looking at how, we can adapt the way that we're the and the grape varieties that we're using in partnership with academic institutions.
Glyphosphates, we banned those in the Martell vineyards in 02/2019. We have a lot of biodiversity projects in place like the one you saw on the opening, slide. And a 100% of our Vinesis is converted into biogas and reused in the production process, hence saving energy. Also, terms of innovation, we're looking at the use of of biocontrols products. So for example, essential oils and pheromones in terms of pests, reduction.
So you can see there that a lot of things have been done, on Martell. In terms of the next, pillar, the people pillar, this is about valuing everybody in our chain, all our employees, but also everyone that we're working with to make sure that we increase diversity and fairness. So part of that is, a new human rights policy in line with the UN guiding principles. It's around responsible procurement. It's making sure that all of our suppliers are working in line with our CSR commitments and and guidelines and direction.
Direction. It's about making sure that in all our brand communications, we're using creative routes to break stereotypes. And it's about health and safety, something that's absolutely fundamental to our business and never more so than ever today. It's about equality and future leadership, equal pay across our business by 2022, and I'm happy to say that we've made great progress in that. At the moment, we have identified a 2.3% pay gap, and we're working very hard to reduce that by our target for 2022.
Gender balance top management teams by 2030 and to ensure that a 100% of our employees receive future fit training every three years by 2030. Also to ensure that we train 10,000 bartenders on the bar world of tomorrow. So just to give you some examples of that, and actually, given the period that we're going through, what we wanted to do was focus on the extensive support that we've been giving all of those different stakeholders, during COVID nineteen. So firstly, if we start with our employees, it's about building this health and safety culture. And for us, this is about a strong mindset.
And as I said, it's been a very strong focus for us over the last year. We have health care benefits for all our employees across the group, including emergency treatment should that be needed. As far as our suppliers are concerned, we've provided support to all of our suppliers and helped with long term buying contracts to help support them during this difficult time. In terms of customers and bartenders, we've provided strong support to the hospitality, sector. For example, in The UK, we've provided support to the Drinks Trust, and in The US, Jamison has provided support to the US Bartenders Guild.
We've also, accelerated a piece of work that we were doing on the Bar World of Tomorrow, around sustainable bars and helping bar owners and bartenders understand how to improve the sustainability of the bars. So we've accelerated this training with a free on your online module, which we've created with the Sustainable Restaurant Association and Trash Tiki. This is hosted on a platform called Educate All, which is a partnership between the the United Nations Institute for Training and Research and EDAP. This is a great piece of free training, that is about two hours long, and really helping during this period where bartenders, have the time to be able to do that training. In terms of the community, we've provided things on many different levels.
Firstly, pure alcohol over three, million liters through our production sites, Irish distillers, Shivers Brothers, The Absolute Company, France, US, and Poland to name a few. And for example, in RECAR, Recar has provided 70,000 liters to Labrador Cooper, which is the biggest, hand sanitizer company in France. We've also, provided, additional liters of hand sanitizers. And an example of that is in The US, they've been working with the NYPD and other partners. And in other countries like India, we've provided, face masks and other medical equipment.
So in summary, really supporting, all of our, all the people that we work within the value chain during this very difficult time. If we move now to the making pillar, the circular making pillar for us is all about making sure that we're producing and making with minimal waste and minimal impact. We talk about, you know, reducing, any kind of overuse of of products. So circular making process is taking the model really from being a linear model to being circular. And you can see a number of different topics and subjects that this addresses.
Firstly, around energy and recycling, around circular design, making sure that all the projects that we produce are really in line with eco design principles, around water use, around reduction of water use, and around exploring new ways of using reusing some of the organic waste in wastewater. Also around two very big topics around, water and carbon to make sure that we receive, that we sorry. We achieve water balance in high risk watersheds. And by those, we mean countries such as China, India, Argentina, Armenia, and Mexico to make sure that we're really addressing that. Of course, in countries, that doesn't mean we don't do anything in countries like Ireland and and Scotland, but, of course, there's much less need to do it there.
In terms of carbon footprint, we have a target there to reduce the overall intensity of our carbon footprint by 50% in line with the SBTs. And we're committed as part of the SBTs to this, plan of making sure that the reduction is staying below the 1.5 degrees. Packaging on waste ban on all promotional items made from single use plastic by 2025, and I'll come on to that in a minute, and to ensure that all of our packaging is recyclable, reusable, compost able, bio based by 2025, and also to pilot new ways of distributing our products. So just to share some progress, on that. So you can see here, and this is really the way we're thinking about it, rethink, reduce, reuse, recycle, and respect.
And recognizing and meeting this consumer desire for less waste, and I think this is never more relevant than today. We decided last week to announce that we would accelerate this time frame from 2025 to 2021. So our target now is 2021 to make sure that we eliminate all single use plastic point of sale materials. What do we mean by those? We mean things like pens, like plastic bracelets, etcetera, and make sure that any point of sale material we have is point of sale with a purpose.
We've reduced that glass, recycled glass content for Absolute and Jameson amongst some of the brands. And also, we've reduced the weight of Campo Viejo, Omeka, and Altos, again, amongst, some of the other brands too. We've moved towards, we're making a strong move towards renewable electricity. We joined RE one hundred. What is RE one hundred?
It's a group of 200 plus companies who've made the commitment to reach a 100% renewable power. This is initiative by CDP and the Climate Group. And we've, made very strong progress in Puerto Rico, Australia, with that. As you can see, we've, put in place more than 10,000, solar panels and was the were the first major winery in Australia to achieve a 100%. And also, we've achieved a 100% at Shivers Brothers and Irish distillers.
And in India, another example, we've put in place, 5,000 square meters of solar panels on the roofs of our production site. Now moving to responsible hosting, hugely important and really at the heart of our business to make sure that we're promoting and selling our products in the right way and to making sure that our employees take strong responsibility and act as ambassadors around responsible hosting. So we want to fight alcohol misuse in society by taking action on harmful drinking. And you can see a number of different targets that we have here around employee engagement, around the consumer information, that we provide about our products and how to drink them responsibly, around responsible marketing in conjunction with the rest of the industry. And we have a target here that was set by '20 set to be 2025, but actually, again, we've accelerated that to be 2024.
And this is around really making sure that we take responsible steps in terms of digital marketing of our products. And fighting alcohol misuse to make sure all of our affiliates have at least one program at scale and in partnership and and a project that an initiative that can be long term and evaluated. Responsible party is initiatives that we started over ten years ago with the Erasmus student network, and our target now is to expand that to reach at least 1,000,000 young adults. So, just to give you an example of some of the progress, that we've made, I would like to share with you a couple of examples, mainly focused on training and innovation. So in terms of our employee ambassadors and ensuring that our employees are ambassadors, we've developed a new online training program, which is also linked with our new global, responsible drinking policy.
So we have these things in place, but we've created new, versions and stronger versions. This training is now absolutely mandatory for all employees, across our business. We also have updated the training on our code for commercial communications. And all of those people in those roles, which are really, directly linked with that, it's mandatory for as well. Responsible party, we took the opportunity during, COVID to create an online, digital campaign to really help encourage responsible consumption during during with young adults during this period of time.
And, and lastly here, we set up an innovative challenge to from new organizations, startups to to come up with ideas on wise drinking, and how we could help put in place some wise drinking, ideas. So we had that two weeks ago, with all our employees had the opportunity to be part of the judging, if you like. And there were two that, the the first and second one is first was an escape game, which is an online challenge where teams solve puzzles to get out of a virtual room based on responsible drinking topics. And the idea is that, everybody learns due during this process. And the second is called Bobby, which is where you can if you go out for an evening, you can rent a driver who will come and pick you up and and drive you home in your own car.
So I hope, that that's given you, a quite a quick, I would say, update because we've done a lot of things in the last year on some of the strong progress that we've made in this first year of implementing our strategy. And we really believe that this continues to demonstrate how it strengthens our business resilience, how it helps to mitigate risk, and also that it's really corresponding to consumer behavior. And we know that that's all changing. Everything's changing all the time. So we need to make sure that we have a strategy that we're able to adapt and change.
And I think we've truly demonstrated that, and we've really empowered the organization to navigate, through this COVID crisis while supporting employees and business partners. And really back to what I said at the beginning, illustrating and underlining the relevance and the importance of this sustainability and responsibility strategy. So we believe that we have the right strategy, a long term strategy, a twenty thirty strategy with milestones throughout that period. So a strategy that's right is addressing the right key global topics. It's relevant.
It's relevant and appropriate in the changing context, and it's ready. It's a clear plan that's been adopted by affiliates with clear targets and a clear timeline and also with scope to seize opportunities. And our vision and ambition is really to continue to drive strongly this this strategy towards a greener and more inclusive economy. So thank you very much. That brings us to the end of the formal part of our presentation, and we'd now like to take questions from you.
Thank you very much, Vanessa. Ladies and gentlemen, over to you for questions. You can type in your questions on the platform by going into the icon on the top right hand side that has a question mark on it. So we have a few questions queued already. The first is from Sanjeet Aujla of city streets.
And the question is, are ESG metrics incorporated into management remuneration targets? And if so, how relevant are they? So to answer on that one, targets are determined by affiliates. We are decentralized organizations and bonus structures can vary across the world. However, the top 500 managers will indeed have an ESG target as part of their metrics.
The usual structure of our metrics for bonuses is to have a quantitative part, is based on profit and cash, and then some qualitative metrics within, the top 500 managers. The qualitative metrics are one related to ESG, another related to the leadership model of Panorica, and then two the others which are depending on some specific projects that individuals are working on. So those ESG that ESG metric that each of those top managers has will depend on the year and the affiliate's specific targets. So in a water stressed area, you might have a target related to water. If you are launching an active, program, for example, on responsible drinking, that might form the target.
In the case of Alexandre Ricard, the last year, it was based on the launch of this new strategy that Vanessa just presented. There is another one for this year. We disclosed them exposed, so you will see that at the end of the year. That answers the question. The second question we have is from Kiran Murray from Bailey Gifford.
The question is, could you clarify long term carbon reduction targets, please? My understanding is that the company had committed to reduce carbon scope one and scope two emissions by 30% by 2030 from the 200 and of the 2018, levels. Vanessa, I'll pass the floor to you.
Thank you for that. And maybe we've already answered your question, parts of that presentation. So, yes, Scope one and two, the target is 30% in absolute. And for Scope three, it's 50% reduction in intensity. Both of those are aligned well below the two degrees, and that is the right time frame from 2,018 to 02/1930.
Okay. Another question from an anonymous caller. On the topic of circular making, wooden gift boxes, I know wood is not the preferred material, but can you confirm if the use of wood will be prohibited? If so, what would be considered the most suitable alternative?
Yes. So, I mean, whilst wood on the face of it seems like it is, should be 100% recyclable, in our new packaging guidelines, we're recommending actually to avoid the use of wood where possible. For some products, you know, the the claim is that you keep the products for longer. However, we are asking, our affiliates to look for alternative, materials, to wood. And at the moment, we're exploring a number of different routes on that.
Thank you. So the next question is from, Chris Pitcher. So what incremental costs associated with the delivery of the ESG goals? Are these already embedded in the p and l, or do you need to make further investments?
So, last year, Alex, Rica already stated that actually in terms of the investment of our strategy, we're talking in the number of of hundreds and millions. Our objectives are obviously spread across the business and so is the budget. So the budget for this strategy forms part of CapEx, marketing, operations, and HR. So that's spread right across the business.
Thank you. So now turning to gender pay gap. None of the question is the following. I think you said you have a gender pay gap of 2.3%, which I think indeed what you said. What prevents you from just closing it?
So we've recently conducted, all the analysis to understand what the gap was. We now know what that gap is, and now we're driving towards closing that. And that has we've, we've got that information in the last couple of months. So we're now we're working towards closing that as quickly as we can and certainly within the 2020, time frame.
Okay. Next question comes from, Greg Delaney from Adenda Capital, who asks the scope three emissions, what strategies is the company using to achieve, reductions?
Yes. So that's in two parts really. It's in in agriculture and in in packaging as well. So in agriculture around pesticides, and for example, we've reduced the use of synthetic agrochemicals since 2013 by 48%. It's also some other more, I would say, regenerative agricultural methods around using more sheep actually than pesticides.
So those are some examples within agriculture. Within packaging, as I said, it's really reducing a number of things. It's it's actually starts with the mindset around packaging and making sure that we're producing our packaging and, and creating it in the right way in the first place. But it's also in line with the the POS that I talked about earlier in the presentation. So, you know, making sure that we only produce what's absolutely necessary.
It's also around reducing the weight of of our bottles, and we've done that, with a number of different bottles. And it's also around, recycled content. So for example, the absolute bottle has recycled content of 45, percent. So I hope that gives some examples of of what we're doing in terms of scope three.
K. So then a follow-up on, the responsible hosting. Can you describe in further details the two steps which you concluded your presentation, that involve a video game and the driver to hire?
Oh, yes. So this was a competition that we put out, through a company called Agorise, which, helps to find ideas from different startups. We had quite a number, I believe, over, 40 initiatives, which were then shortlisted. And then we ran because it ended up being during the the shutdown period, we ran a a competition with a panel of, different expert judges, but also with our own employees to to judge from five of the one shortlisted. And the one that won, as I said, was this escape game, and they're currently working on more details, on how exactly, that's going to work.
But it's about really learning and education as you go along in order to be able to escape the virtual room. And as I said, the other one is around a, a driver, I suppose a bit like an Uber, but you're actually hire hiring the driver rather than the car. So the driver comes and collects your car from you. Let's say you've been to a passing place, he'll come and he'll drive you back with your own car, to your own home. And we see that we would use we could use that very strongly in our own events in the future.
Okay. A question now from, Edmundy from, Jefferies. He says he appreciates that ESG factors can boost the image and reputation of Pernica. But how do you measure the positive effect on brand equity? Which brands are seeing an uplift in their brand equity as a result of ESG factors?
So I would say when we we look at our brands, I mean, obviously, at the moment, they're all working on on different aspects of of what that means for them, and it means different things because it's got to be really linked to the to the brand truth and the stories of the brand. They are all taking actions, all of the brands, and all of the brand companies in line with the four pillars of our strategy. Absolute, for example, is seem to be really very strong in terms of circularity in a lot of the things that it's doing. It's been identified as being one of the most carbon one of the most amongst the most carbon neutral, distilleries in the world. And all of this now is being shared increasingly with the consumer, so they have a better understanding of the provenance of the brand.
I mean, all a 120,000,000, I think it's more than a 120,000,000 bottles of Absolut come from one source. They come from one place. So there's clear traceability, there's clear product quality, attached to that for the consumer. And, and we're seeing, of course, increasingly that consumers are much more aware and much more keen to understand about product quality, provenance, and have greater transparency about all the people that have touched their products throughout the throughout the value chain. And, in that example of Absolute, you know, we know all 400 farmers.
Okay. So a follow on related question maybe, Vanessa. It comes from a three site exam, asset management who asks, which of your brands would you consider the best in class regarding ESG?
I would it's a I think they're all along different paths at the moment. I think it's true to say that that Absolute is the one that's furthest down the track in terms of circularity, that's for sure. But also brands like Jameson are making very strong steps forward in terms of energy efficiency and the same with with Chivas, on all the Scotch Whiskey brands. But I would say the one that's probably more visible to the consumer in terms of, actions they're taking would be Absolute. And also, sorry, Kahlua on a smaller as a smaller brand, but Kahlua has a very strong program, in in Mexico where it's working directly with coffee growers.
It's helping, coffee growers to to to grow their coffee in a better way. It's helping to build those communities. So at the moment, we're working with over 200 families, but once that's scaled up, that'll be 500 families, and, that will mean that the the full, supply of Kahlua, the full coffee supply of Kahlua will be 100% sustainable.
Thank you. A question going back to the gender pay gap. So I think you said that it shows the gender pay that pay gap by 2020. I think that was it was 2022, Vanessa. Right?
Yes. Yes.
Okay. Can you suggest for clarity that it's 2022? Can you put a figure on that gap at the group level? So and let us know if you will find additional savings if we should just take that number off margin.
As I said, we've just only just completed that analysis. We knew we had this call, so we wanted to share that, that 2.3% number with you. So at this stage, we would need to come back to you on that on that number and fully answer that question.
Thank you. Again, ladies and gentlemen, if you would like to ask questions, you can do so by typing in the question and by clicking first on the top right hand button which has a question mark on the top band of the of the screen. The question the final question at the moment is from Trevor Sterling. How do you apply your sustainable agriculture principles to bulk commodities such as grain? Do you think you and or the industry will move to direct contracts which have sustainability clauses?
I'll I'll start the answer. I may actually. I believe Corinne Christophe, who's from our sustainable performance team is there, so she may be able to add to that one. You know, grain will be covered by sustainable certificate standards, and that that they will be in that will be included in the contracts. But at the moment, there's no plans for any to include that in a direct contracts.
Corinne, I don't know if you have anything to add to that. Believe
you If I can add something in terms of the supply chain of the commodities. So the main, grapes, cereals, and all the bulk commodity that we are buying generally in, by terroir, and they are very locally, procured. So it means that, we are depending on the on the the different, cooperatives. And with the cooperatives, we are making some change in the supply chain to make sure they are going to sustainable agriculture standards. So all of the bulk commodity that we buy will be certified according to sustainable agriculture standards by 2030.
Sorry. Thank you, Corinne. We have a new question, which is how does Penarito balance its new mission to packaging where luxury of liquid is suggested by elegant bottles? Yeah. Think Vanessa's back.
So we just had a technical, issue. Vanessa, do you want to take that question? Did you hear it? I think you're muted, Vanessa.
Sorry. It was about the balance of luxury, and trying to hit our meet our packaging targets. And that's a very, very good question because, of course, we have, we have products that have high premium queues, but we strongly believe that actually they don't need to be, in some of the materials that they've been used in the past. So we're reviewing all of those materials to truly understand what materials we need to replace, as part of our targets, for 2025. So we absolutely do believe that that's possible.
And also, think in explaining to consumers that, that demand less waste, these days, it's it's part of the story of the of the of the product as well going forward and and encourages innovative techniques too.
We now have a question which is, more focused on digital. So has Pen Au Picar determined whether it can support advertising in the digital world as it did historically as a leader in the real world? Do you want to start on that one, Vanessa?
I would say, you know, advertising has always been very strong for Puerto Rico around our brands. We have brands that have very distinct personalities, And certainly, we have a very strong team in our global business development team who are, working on digitalization of the business, but also to see how we can strengthen what we're doing, in advertising. And that's also linked as well with what we're doing around ecommerce too.
Thank you. There are no further questions in the queue, so I think that concludes our presentation and q and a session for today. Vanessa, ladies and gentlemen, and Karim, thank you very much, and have a good oh, we just received one new question. So, Vanessa, if I can this one in. A question from Ton Vanuyen from APG.
What are the ideas and plans about linking sustainability and responsibility targets and compensation for different level of management now and going forward? So maybe actually you want me to build on that one. We we had discussed earlier that the top 500 managers have a target. These targets are linked to the sustainability and responsibility strategy that Vanessa presented and indeed the different KPIs that you see there along the different years. Depending where the focus is from one year to the other, some of the targets will be adapted to reflect, those objectives.
I'd say that, going forward, that will be, if anything, reinforced given the, growing, consumer and business need for more sustainability. Don't know if Vanessa, you wanted to add No.
I'd also say because we put in place very strong governance, models in all of our affiliates, particularly related to the direct affiliates who have set up steering committees for sustainability. All of those people who are usually CODI members, so senior management members, also have targets, that they have to reach. And in some parts of Puerto Rico, because as you know, we're very, decentralized, They've actually, those those, KPIs have gone down throughout the whole organization. So this year, we'll be looking at aligning those to see, that we can we can give targets, to to other parts of the organization as well. Certainly, all the top management have targets as Julia said.
I think this time it does indeed conclude our q and a session. Thank you very much, ladies and gentlemen. Enjoy the rest of your day. Vanessa, Corine, thank you very much for your time. Should there be any further questions, please don't hesitate to reach out to us.
Thank you. Thank you for joining us.