SUSTAINABILITY REPORT 2017 EXECUTIVE SUMMARY
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1 SUSTAINABILITY REPORT 2017 EXECUTIVE SUMMARY
2 SUSTAINABILITY REPORT 2017 EXECUTIVE SUMMARY Viña Concha y Toro S.A. RUT: Head Office: Avda. Nueva Tajamar 481, Torre Norte, piso N 15, Las Condes, Santiago, Chile Telephone: (56-2) Fax: (56-2) P.O. Box: 213, Correo Central, Santiago Website: For further information or suggestions on how to improve the next report, please contact: Valentina Lira M. Sustainability Manager valentina.lira@conchaytoro.cl RECYCLED Made from recycled material Renewable energy Responsible with the environment
3 Letter from the Chairman Dear all: The size of this publication allows an optimum use of the sheet of paper, reducing waste from the printing process. This publication, using recycled paper instead of virgin fiber paper, has saved: L OF WATER 256 kwh OF ENERGY 242 kg OF WOOD 149 kg OF WASTE 22 kg On behalf of Viña Concha y Toro, I am pleased to present our sixth Sustainability Report, which accounts for the company s performance on social, environmental and governance aspects. This document, prepared according to the GRI standards, incorporates for the first time the company s three productive origins: Chile, Argentina and the United States. During the year we reaffirmed our commitment to the implementation of renewable energies, and in this line, Fetzer Vineyards has become the first wine company in California to operate entirely on clean energy. In Chile, recognizing the potential of our territory, we signed agreements for the construction of 10 photovoltaic plants in several of the company s estates. In terms of local development, we renewed the Productive Alliances program with INDAP, which seeks to advise small grape suppliers and provide them with better competitiveness tools within the industry. Viña Concha y Toro s Research and Innovation Center (CII) continues generating and transferring applied research that enhances technological development. The relationship with our employees has always been of upmost importance, so we have focused on career development and talent management, improving employees training and permanently securing their health and safety. In terms of responsible marketing, the Enjoy Wine, Take Responsibility campaign was implemented, showing our commitment to promote moderate alcohol consumption. The progress made in sustainability has been widely recognized during For example, for third consecutive year we were selected to be member of the Dow Jones Sustainability Index Chile, and we also we achieved the carbon footprint certification from Carbon Trust, and Viña Cono Sur obtained the Gold seal of energy efficiency. In matters of corporate governance, Eduardo Guilisasti was elected General Manager of a Leading Company in Sustainability by the organization ALAS20. These recognitions motivate us to continue on this path, understanding sustainability as a key strategic element of our management. I invite you to read this report, hoping that you will find information of your interest about our vision of sustainability, and learn more about how we support the fulfillment of the Sustainable Development Goals of the United Nations and the Global Compact Principles. Yours sincerely, Additionally, the cover used curious matter, a innovative eco-friendly paper made of potato skin. We continued strengthening our relationship with our customers, and we underwent 24 ethical audits that allowed us to provide objective guarantees on social and labor requirements at all stages of the production process. In this same line, we also requested external service contractors to be audited on compliance with the Corporate Ethics Standard. Alfonso Larraín Santa María Chairman of Viña Concha y Toro
4 About this Report To determine the relevant issues covered by this report, the company conducted an exhaustive materiality analysis through an internal and external evaluation. The first one considered the update of the company s Sustainability Strategy carried out by the top executives, as well as a prioritization of contents done at a workshop that brought together 31 employees in charge of managing the main topics of each strategic pillar; interviews with subsidiaries representatives, and a review of internal documents. The external evaluation was based on an online survey, answered by 106 people, including employees, suppliers and other stakeholders, a review of the sustainability context in the industry, and a benchmark of good reporting practices. 6th Sustainability Report on the company s Economic, Environmental and Social performance. GRI The report has been prepared in accordance with the new GRI reporting standard, in its comprehensive option, and responding to the Communication of Progress (COP) on the integration of the principles of the Global Compact. MATERIALITY MATRIX REPORT VERIFIED by an independent third party. 1ST REPORT that includes the company s three productive origins (Chile, Argentina and the United States).
5 Stakeholders In 2017, Viña Concha y Toro underwent a process to update and prioritize its stakeholders, with the purpose of evaluating, proposing and deepening value-generating actions with each of the stakeholders. 8. MEDIA 1. SUPPLIERS - Financial rating agencies - Investment Fund Administrators - Investment banks 7. SHAREHOLDERS AND INVESTORS - International media - Local media - Agricultural supplies - Grapes - Winemaking supplies - Packaging - External Services - Transport and Distribution - Neighborhood associations near Concha y Toro s facilities - Local authorities where Concha y Toro has academic institutions 2. COMMUNITY 6. CLIENTS - Retail - International distributors - National distributors - Government - Regulatory authorities - International organizations - Government agencies 5. GOVERNMENT AND AUTHORITIES - Educational association - Trade Associations Wines of Chile - Pro sustainability organizations - Competitors - Senior executive positions - Junior executive positions - Technical and/or administrative positions - Temporary employees - Trade unions 3. EMPLOYEES 4. CIVIL SOCIETY
6 Milestones ,169 employees worldwide 305 thousand tco2e carbon footprint Investment in innovation M$2,512,877 Consolidated sales $643,785 million Viña Cono Sur Fetzer Vineyards BSCI Bodega Trivento N 1 Almaviva Chilean Producer Momentum For Change 24 ethical audits winery in Europe 100 points of the Year United Nations under the BSCI Global Data Top 100 Wine of Wine & Spirits Secretariat for standard in wine 2017 James Suckling Competition Climate Change cellars, plants and vineyards Fetzer Vineyards First Zero Waste to Landfill wine company in the world Fetzer Vineyards First winery in California to operate with renewable energy Viña Concha y Toro Top #10 Beverages Category Dow Jones Sustainability TM Index Viña Cono Sur Energy Efficiency Seal Gold Category Ministry of Energy Viña Palo Alto First place in the Great sustainable launch of the year category Green Awards 2017 The Green Business
7 Production Viña Concha y Toro has set the objective to maintain its leadership in the wine industry by being in harmony with the sustainability of its operations. SUSTAINABILITY FROM THE VINEYARD TO THE GLASS Holding Concha y Toro VINEYARDS GROWING AND CARE The production cycle starts with the beginning of the agricultural year on June 1. The care of the vineyards is essential for the preservation of natural resources. HARVEST The process of harvesting and grinding the grapes begins at the end of March. After the harvest, the grapes are transferred to the wells in the winemaking cellars. WINEMAKING Controlled fermentation of grapes to obtain an optimal oenological result. BOTTLING AND PACKAGING Safe packaging of wine in the different formats offered by the company. 05 DISTRIBUTION Distribution to logistics centers or export to finally reach the consumer's glass. OPERATIONS IN CHILE FETZER TRIVENTO 55 vineyards. 9,722 hectares planted. 9 vineyards. 1,140 hectares planted. 14 vineyards. 462 hectares planted. 107 (mill kilos) own grapes. 194 (mill kilos) own grapes (mill kilos) own grapes (mill kilos) purchased grapes. 3,5 (mill kilos) own grapes. 19 (mill kilos) purchased grapes. 15 winemaking cellars mill. lt. 2 winemaking cellars mill. lt. 1 winemaking cellars mill. lt. 4 plants mill. lt. bottled. 1 plant mill. lt. bottled. 1 plant mill. lt. bottled. Concha y Toro Holding's products are distributed in 140 countries SUSTAINABILITY ASPECT Drip irrigation for an efficient use of water. Phytosanitary management and responsible fertilization, keeping the proportions between water and nutrients, to avoid disturbing water bodies and surrounding fields. The organic remains of the vines are reused in the composting of fields. Provide safety and good working conditions to seasonal workers. Annual training for workers involved in the harvest process. Monitoring and coordination of the grape harvest process with grape suppliers. Planning of own and external fields to optimize the use of machinery and energy. Incorporation of tangential modules to filter wine without generating waste. Organic waste is recycled to make tartaric acid and as a compost for reuse. Sanitization of tanks to prevent health and safety incidents. Certification under the BRC and IFS standards. Energy efficiency in plants. Use of certified supplies. industrial waste is recycled or reused. Reduction of the carbon footprint with the use of light bottles. Eco-labeling (Sunrise). Information on responsible drinking.
8 Viña Concha y Toro's Contribution to the Sustainable Development Goals (SDG) Concha y Toro Holding aims to continue being one of the leading wine companies worldwide, which is why it has integrated the principles of the Global Compact and, more recently, the United Nations Sustainable Development Goals (SDGs) into its internal activities and the pillars of Viña Concha y Toro s Sustainability Strategy. This, with the purpose of establishing a direct relationship between what the United Nations is trying to achieve and those actions that the company is currently developing and carrying out, aiming to contribute to the realization of the SDGs by The principles established by the Global Compact and the goals developed by the UN for each SDG were put together for this specific purpose, with the activities recently elaborated and the sustainability strategy s own objectives, defined according to the organization and its impact. Focus is being placed on establishing a direct relationship and therefore being able to maximize the actions that are already taking place, and identifying others, where the organization could produce meaningful results.
9 Viña Concha y Toro's Contribution to the Sustainable Development Goals (SDG) Concha y Toro Holding aims to continue being one of the leading wine companies worldwide, which is why it has integrated the principles of the Global Compact and, more recently, the United Nations Sustainable Development Goals (SDGs) into its internal activities and the pillars of Viña Concha y Toro s Sustainability Strategy. This, with the purpose of establishing a direct relationship between what the United Nations is trying to achieve and those actions that the company is currently developing and carrying out, aiming to contribute to the realization of the SDGs by 2030.
10 Objetives 2020 COMMITMENT Reduce by 10% the consumption of water per glass of wine produced Eliminate waste to landfill Reduce total greenhouse gas emissions in scopes 1 and 2 by 30% PROGRESS 2017 Customers COMMITMENT Reduce by 15% emissions per bottle of wine produced and transported by land Ensure of key customers compliance of the company's Corporate Ethics Standard PROGRESS 2017 In 2017, it was 1.07 Kg of CO2 per 750cc bottle, which means a decrease of 5.3% compared to 2016 Ethics and sustainability self-evaluation answered by 25 customers Environment Reduction of 12% of the total water footprint Only a 4% of waste disposed to landfill In 2017, emissions of scope 1 and 2 were reduced by 6% COMMITMENT Have of key suppliers in full compliance with the company's ethical standards Minimize the environmental impact of supplies at each stage of their life cycle, by developing innovative supplies Reduce key suppliers GHG emissions by 15% per bottle COMMITMENT PROGRESS 2017 Strengthen employees different competencies, increasing the hours of training Improve employees level of commitment Supply Chain Ongoing dissemination and promotion of the Corporate Ethics Standard, including clauses on compliance with the Code of Ethics and Conduct in contracts with suppliers and distributors PROGRESS 2017 The company has encouraged the use of light bottles. Currently People Increased by 3.3% in 2017, resulting in 31 hours of training per capita The level of commitment perceived by employees in the annual survey increased by 3% compared to Work was done to improve internal communication and recognition through the leadership program for different job categories 97% of bottles used by the company are Ecoglass, which weight less and whose production has a lower environmental impact 11 suppliers delivered their carbon footprint in 2017, none of them with variations greater than 15% COMMITMENT COMMITMENT Improve communities quality of life through investment in infra- Raise sustainability attributes for of the Concha y Toro brands structure and social programs Promote, create and strengthen a healthy relationship with wine con- Increase the transfer of R&D knowledge to grape growers and the sumption, based on a corporate program of Responsible Drinking industry in general Extend Concha y Toro s participation in other product categories Improve grape growers business and property management skills PROGRESS 2017 PROGRESS 2017 Sustainability attributes were built for of Concha y Toro products Viña Palo Alto's Enjoy Wine, Go Solar Program provided the Santa The Enjoy Wine, Take Responsibility ( Disfruta el vino, toma Laura de Lo Figueroa School with 16 photovoltaic panels that gen- con responsabilidad ) campaign was launched, establishing Viña erate 8 MWh per year to help cover their energy consumption Concha y Toro s principles of moderate drinking through informative Society Grape growers were supported and 12 projects were submitted to IN- DAP's Investment Development Program (PDI), and 6 of them approved. Products talks on the company s different web platforms to more than 900 employees and external collaborators. 5 grape growers built deep wells and two of them implemented Ongoing work with the Drinkaware Foundation photovoltaic irrigation projects The Drug Use and Alcohol Abuse Prevention Program for employees The number of grape growers participating in the Productive Alli- continued ances Program increased to 29 New Coolers and Sangría products were launched, belonging to the Flavored base wines category
11 Sustainability Strategy Each of the company s departments is responsible for managing their activities in a manner that is responsible with the environment and the surrounding communities, complying with the governance values and principles that drive the company, working to meet the goals of each of the six pillars established in the sustainability strategy: Offer excellent Products that provide the best experience for our consumers. Be a partner to our Suppliers. Create partnerships with our Customers. Have highly committed Employees. Create shared value for Society. Be a benchmark for the industry in Environmental practices.
12 Environment 01 Viña Concha y Toro is committed to being a benchmark for the industry in environmental practices, adopting a culture of sustainability in the development of its products. WATER The water footprint decreased 17% compared to the previous year of the vineyards have drip irrigation system 76 natural water sources, none affected by the company s water use LITERS OF WATER USED TO PRODUCE A 125 ML WINE GLASS CONCHA Y TORO INDUSTRY AVERAGE BIODIVERSITY In Chile, more than 3,200 hectares of native forest are under conservation plans Fetzer Vineyards came in second place in the The Green Business Awards for its contribution to the protection and conservation of biodiversity CARBON FOOTPRINT MEASURED FOR 10 CONSECUTIVE YEARS Concha y Toro was certified by CarbonTrust, which will allow in the short term to have eco-labels, improving the information available to consumers globally Viña Cono Sur is the first wine company to obtain the status of Carbon Neutral Delivery by neutralizing its CO 2 emissions produced in maritime transport Fetzer Vineyards is the first company certified Carbon Neutral in California In Chile, greenhouse gas emissions (GHG) decreased by 3.5% EMISSIONS FOR SCOPE BY VIÑA CONO SUR AND VIÑA CONCHA Y TORO Scope 3 79% Scope 2 7% Total GHG emissions 305 thousand tco2e Scope 1 14% ENERGY Each liter of wine produced in Chile consumes 0.43 kwh Concha y Toro reduced its electricity consumption by 11% and fuel consumption by 8% Fetzer reduced by 4% its electrical consumption and by 11% the use of natural gas Viña Cono Sur has the ISO certification and obtained the Gold seal of energy efficiency granted by the Ministry of Energy COMMITMENT TO RENEWABLE ENERGIES In operations in Chile, the company is working on the implementation of 10 photovoltaic plants Fetzer Vineyards has a NCRE matrix WASTE Concha y Toro recycles or reuses 96% of its waste Bodega Trivento reuses or recycles 86% of its waste Fetzer reuses or recycles 97% of its waste OPERATIONS IN CHILE Tones Type of waste Disposal 54,000 Organic recycled or reused 2,600 Packaging recycling 2,904 Household landfill In terms of ILW, operations in Chile have 5 wastewater treatment plants, including a Wetland biological system in the Limarí winery. Fetzer Vineyards has a BIDA BioFilter system, which uses biological organisms such as worms and microbes to treat agro-industrial waters.
13 Supply Chain 02 The company has a policy that prohibits the use of any enological and/or agricultural supply that contains Genetically Modified Organisms (GMOs), whether it is leased or directly purchased. Viña Concha y Toro aims to build a relationship of trust and transparency with its supply chain, seeking to achieve an efficient coordination between suppliers of one or more products in the right amounts, the right places and at the right time. SUSTAINABLE PACKAGING Currently 97% of the bottles used by Viña Concha y Toro are light bottles made of ecoglass SCENARIO WITH AND WITHOUT LIGHT BOTTLE IN THE OPERATIONS IN CHILE , , , ,159-12,648 Difference -15,076 Difference In Chile, 93% of suppliers are local, distributed throughout the country In Bodega Trivento, 88% of suppliers come from Mendoza, Argentina In Fetzer Vineyards, 85% of the suppliers come from California, USA , ,743-14,449 Difference Current (Tons of glass) RESPONSIBLE SUPPLY SUSTAINABLE PRACTICES TRANSFER SUPPLIERS ACCORDING TO INTERNAL CATEGORIES 2017 % ASSESSED Concha y Toro 34% TYPE OF ASSESSMENT Sustainability Code + Ethics and Sustainability Self- Assessment + BSCI Code Audit Viña Cono Sur 9% Sustainability Code Packaging Supplies (Operations in Chile) External Services (Operations in Chile) 95% Ethics and Sustainability Self-Assessment Ethics and Sustainability Self-Assessment TYPE OF SUPPLY Boxes CERTIFICATION ISO 9001, ISO 14001, FSC Capsules ISO 9001; ISO 14001; OHSAS 18001; BRC Corks Labels ISO 9001; ISO 22000: FSC IFS PAC secure; ISO 9001; FSC Bottles ISO 9001,; ISO 22000; ISO Caps ISO 9001; ISO 22000; BRC Without light bottle (Tons of glass) Our strategic partners have certifications that guarantee their commitment to quality, care for the environment and risk prevention. 11 suppliers measured and delivered their carbon footprint to Concha y Toro, none with a variation of more than 15%
14 Product 03 Through a broad portfolio of products of excellent quality, the company seeks to satisfy its current consumers while effectively conveying sustainability attributes consistent with the identity of each of the brands. INNOVATION Viña Concha y Toro s Research and Innovation Center of develops applied technology, favoring knowledge transfer through 5 strategic programs, one of which is the design of new products: In the creation of Diablo, chemical-sensorial studies of benchmarks were developed The Flavored Base Wines line launched new versions: Berries, Pineapple-Passion Fruit and Clos de Pirque Sangria Jacked, a new brand of flavored wines developed thanks to an thorough research process RESPONSIBLE MARKETING Viña Concha y Toro, seeks to promote responsible drinking through three mechanisms: Drinkware, an international organization where the company is one of the founding partners, which provides information and tools to promote moderate drinking APROCOR, a trade association of spirits companies for responsible consumption that brings together the main representatives, importers and producers of alcoholic beverages in the country Enjoy wine, drink wise, the internal campaign where the company shows its commitment to moderate alcohol consumption Casillero del Diablo, Concha y Toro s main brand, introduces 2 new lines: Red Blend y Diablo. James Suckling awarded 98 points to Don Melchor, the company s icon Cabernet Sauvignon Fetzer Vineyards 1,000 Stories is named an Impact Hot Prospect brand for its considerable growth QUALITY CERTIFICATIONS For Viña Concha y Toro, caring for the environment while ensuring the quality and excellence of its wines is a crucial aspect of its operations, and so it has several recognized certifications. Viña Cono Sur has the Organic credentials of Kiwa BCS and the Sustainability Code. Also, in 2017 it was certified on the ISO 9001: 2015 standard for Quality Management systems. Fetzer is certified by the GSFI Global Food Safety Initiative as well as the CCOF Organic Certification and the Demeter certification for Biodynamic products and B Corp. SUSTAINABLE PRODUCTS COMPANY GMO-FREE ORGANIC* BIODYNAMIC* GLUTEN FREE Thanks to many initiatives, such as the "Enjoy Wine, Go Solar" project, Viña Palo Alto was awarded the Special Commendation by the Drink Business magazine, for the sustainable campaign of the year. Sunrise, one of the brands of Concha y Toro, has as a differentiating attribute the neutralization of its GHG emissions, which during 2017 were just over 4,600 tco 2 e. SUSTAINABLE Concha y Toro x x x Viña Cono Sur x x x x Quinta Maipo x x x x Fetzer Vineyards Bodega Trivento x x x x x x (*) Only some products are certified organic. x
15 Customers 04 CUSTOMER SATISFACTION In order to identify opportunities for improvement and enhance the positive aspects of its management, every year customers are invited to participate on an online survey to identify their level of satisfaction and their degree of loyalty towards the company. In this context, 65% of customers consider Viña Concha y Toro cares about sustainability. PERCEPTION OF SUSTAINABILITY 65% 60% 58% Viña Concha y Toro seeks to build long-lasting and trustworthy relationships with its customers through efficiency, quality and transparency. CLIENT AUDITS As part of the continuous process of deepening the relationships with with customers, the company underwent a series of audits to guarantee the company s performance in ethical, environmental and quality requirements. AFTER-SALES MANAGEMENT The management of suggestions, requests or complaints showed it was 7.8% less than the previous period CLIENT AUDITS SUMMARY Woolworth BSCI Tesco Smeta Morrinsons BSCI GHG emissions due to land transport have been reduced by 12% Supply Chain Management Logistics Management Customer Service Management EFFICIENCY IN CO 2 EMISSIONS For second year in a row, the Multimodal program, which has the objective of reducing GHG emissions by transporting products via rail to ports, transported 510 tons during 2017, which meant a mitigation of 4.6 tco Walmart Tesco 1 Tesco Walmart PROMOTION OF SUSTAINABILITY New contracts with clients binds them to comply with the company s Code of Ethics and Conduct 25 clients responded a self-assessment on ethical, social and environmental aspects
16 People TEMPORARY WORKERS AVERAGE TEMPORARY WORKERS of temporary workers were trained Total 1,314 Fetzer 9 Trivento 22 Operations in Chile 1,283 Viña Concha y Toro seeks to create long-term relations with all those who are part of the company, through professional development and by fostering employees physical, mental and social well-being. QUALITY OF LIFE The Human Resources management builds a direct relationship with each and every one of the company s employees through a series of benefits and professional activities, and also develops several programs and activities that aim at the quality of life of the people that make up the company. APERRA CON TUS IDEAS PROGRAM Its purpose is to develop and guide employees initiatives on efficiency and process improvement. During 2017, twelve projects were implemented, three of which were based on the use of recycled materials. 3,169 Personnel Permanent contract: 3,064 Fixed term contract: 105 1,314 1, Average Temporary Workers Contractors of Viña Concha y Toro and Bodega Trivento Job positions filled by women RISK PREVENTION It is a transversal aspect and a core element for the company, so during 2017 of the employees that work in the harvest process were trained. 96% (average) of employees are covered by the different joint committees of the operations in Chile and the USA. 97% of the personnel has a permanent contract 73% of the total personnel correspond to men and 27% to women 32% of the total personnel are in operative positions 62% of the total personnel is between 30 and 50 years of age Concha y Toro Viña Cono Sur Fetzer Vineyards Bodega Trivento 19% reduction in accidents 2% reduction of average working days lost 62% reduction in accidents 81% reduction of average working days lost 15% Incidence Index 4.3 Lost time Index 6.1 accident rate 185 Average working days lost
17 Society 06 TRAINING AND EXTENSION Since opening in 2014, the Center for Research and Innovation (CII) has promoted applied research, technological development and knowledge transfer, being a space open to the winery s productive and social environment. EXTERNAL VISITORS TO THE CII ,157 total 551 external total 395 external Concha y Toro Holding understands that its commercial activity also creates value for the social and productive environment in which it operates. Therefore, interacting directly with producers, promoting academic extension, and relating with the community is of great relevance to the company. PRODUCTIVE ALLIANCES FETZER WITH SMALL GRAPE GROWERS Focus: Strengthen the Productive Alliances 29 Focus: Enhance agricultural management Focus: Create commercial links 29 FETZER ALLIANCES Sola Bee Farms program to receive the population of bees in Bonterra s biodynamic fields, allowing bees to feed on healthy flora. Kaos Sheep Outfit program that allows about 2,000 sheep to graze on the fields of the Californian company, which helps to fertilize the soil. COMMUNITY AND SOCIAL ENVIRONMENT Each of the facilities (farms, winemaking cellar or plant) has a delegate for community relations, and during % of the requests done by the community were approved Sports is another of way in which the company promotes local development, supporting 30 children who are part of the Ferro Unido Corinto football school in the Maule region In the San Vicente de Tagua Tagua, O'Higgins Region, the company lent a sector of the Idahue estate to the sports club of the same name Viña Palo Alto launched the Enjoy Wine, Go Solar campaign, with the technical support of Tesla Energy, to install 16 photovoltaic panels that allow the generation of 8MWh per year, to cover an important percentage of the energy requirements of the Santa Laura de Lo Figueroa school, in Pencahue Viña Cono Sur has action plans to notify the communities surrounding the Santa Elisa estate, in Chimbarongo, about possible frosts Fetzer Vineyards collaborates with the North Coast Opportunities project, which aims to improve the nutrition of vulnerable population in the counties of Mendocino and Lake through the construction of community gardens EDUCATION Viña Concha y Toro recognizes the value of education as a means to people s development and social mobility. During 2017, the Cultívate (Cultivate Yourself) program began, which generates formal and longterm agreements with educational institutions in the districts where the company operates Same as in previous years, the company granted scholarships to 25 young people with outstanding performance through the Fundación Juan Pablo II and the Las Garzas Agricultural School
18 ENVIRONMENT SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO 2030 AGENDA Goal 2020 Progress 2017 SDG Specific Objective Goal 2030 PROGRESS TOWARDS SDGs WATER -10% In water footprint per glass of wine -9% Variation 6.4 Ensure sustainability in the extraction of water Increase water efficiency ENERGY Renewable energy 62% Renewable energy 7.2 Promote the NCRE ratio Increase NCRE proportion BIODIVERSITY Forests with implemented plans Plans designed 15.1 Ensure the conservation of ecosystems Increase or maintain conservation area As a global company, Viña Concha y Toro communicates the progress made towards the SDGs (Sustainable Development Goals) of the United Nations through this report, produced according to the GRI standard. WASTE CLIMATE CHANGE 0 Waste to landfill 30% Reduction in scope 1 and 2 4% Landfill 6% Reduction Improve water quality Reduce the generation of waste Incorporate measures relating to climate change Improve industrial waste water ratio/product Increase recycling rate/product Increase climate change actions/risks
19 Progress Towards SDG Progress Towards SDG RESPONSIBLE SUPPLY CHAIN SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO SUPPLY CHAIN 2030 AGENDA Goal 2020 Progress 2017 SDG Specific Objective Goal 2030 Key suppliers meeting the Corporate Ethics Standard 58% In stage 1 of assessment 8.8 Protect labor rights and safe work environment compliance with ILO INNOVATION SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO PRODUCT 2030 AGENDA Goal 2020 Progress 2017 SDG Specific Objective Goal New product categories 1 Category 9.5 Increase research in the industry Increase research/ revenue CARBON FOOTPRINT 15% Footprint reduction per bottle 12% Reduction 9.4 Promote the adoption of clean technologies Decrease tco 2 /product QUALITY 0% Retentions 1.6% Retentions 8.2 Improve productivity through innovation Increase sustainable growth rate PACKAGING Of premium portfolio using "Eco2" bottles 6% Of the premium portfolio using "Eco2" bottles 12.2 Efficient use of natural resources Decrease raw material/ product SUSTAINABLE ATTRIBUTES Brands with identified attributes and implemented campaigns Attributes identified 12.8 Promote access to information on sustainability Improve dissemination /communication campaigns RESPONSIBLE DRINKING 1 Campaign implemented in 4 phases 25% Phase 1, development of internal campaign 3.5 Strengthen the prevention of harmful alcohol consumption Strengthen campaigns/ product
20 Progress Towards SDG Progress Towards SDG SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO CUSTOMERS 2030 AGENDA Goal 2020 Progress 2017 SDG Specific Objective Goal 2030 SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO PEOPLE 2030 AGENDA Goal 2020 Progress 2017 SDG Specific Objective Goal 2030 EFFICIENCY IN LOGISTICS COSTS $22 /lt $ 19.8 /lt 8.2 Improve productivity through innovation Increase sustainable growth rate CAREER DEVELOPMENT Departments with career plans 38% Employees 8.3 Promote training policies Promote training policies and plans EFFICIENCY OF CO² EMISSIONS 15% Reduction in emissions per bottle 12% Reduction 9.4 Promote the adoption of clean technologies Decrease tco2e/product ENGAGEMENT +70% Level of engagement Action plans communicated to management 8.2 Improve productivity through innovation Increase sustainable growth rate INTEGRAL CUSTOMERS Of customers complying with the Corporate Ethical Standard 15% Stage 1 selfassessment 8.8 Protect labor rights and safe environment compliance with ILO KNOWLEDGE CENTER ETHICAL MANAGEMENT 45 Man-hours of training per person per year Certified under SA 8000 standard 31 Man-hours of training per person per year in Chile 30% Sites diagnosed and with external verification Ensure access to formal education Protect labor rights and safe work environment Increase % of training compliance with ILO
21 Progress Towards SDG SOCIETY SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO 2030 AGENDA Goal 2020 Progress 2017 SDG Specific Objective Goal 2030 PRODUCTIVE ALLIANCES EXTENSION FOR GRAPE GROWERS COMMUNITIES Grape growers with an increase in productivity Relevant stakeholders visiting the center 4 Social programs 50% Increase in productivity Reach 1 Program (Viña Palo Alto) Improve productivity through innovation Promote training policies Develop infrastructure for people s wellbeing Increase sustainable growth rate Promote training policies and plans Increase % infrastructure/ person This document is a summary of the 2017 Sustainability Report, highlighting the company s main governance, social and environmental milestones during the period. It has been prepared in accordance with the GRI reporting standard, in its comprehensive option, and has been verified by an independent third party (Deloitte). The complete document is availbale at: EDUCATION Of graduates in the labor market 94% Of young graduates working 4.3 Ensure access to formal education Increase % of training
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