Sustainability Report 2017 Executive Summary Sustainability Report 2017 Executive Summary

SUSTAINABILITY REPORT 2017 EXECUTIVE SUMMARY SUSTAINABILITY REPORT 2017 EXECUTIVE SUMMARY

Viña Concha y Toro S.A.

RUT: 90.227.000-0 Head Office: Avda. Nueva Tajamar 481, Torre Norte, piso N°15, Las Condes, Santiago, Chile Telephone: (56-2) 2476 5000 Fax: (56-2) 22036733 P.O. Box: 213, Correo Central, Santiago Website: www.conchaytoro.com

For further information or suggestions on how to improve the next report, please contact:

Valentina Lira M. Sustainability Manager [email protected]

RECYCLED Made from recycled material 100% Renewable 100% Responsible energy with the environment Letter from the Chairman

Dear all:

The size of this publication On behalf of Viña Concha y Toro, I am pleased to In terms of responsible marketing, the Enjoy Wine, allows an optimum use of the present our sixth Sustainability Report, which ac- Take Responsibility campaign was implemented, sheet of paper, reducing waste counts for the company’s performance on social, showing our commitment to promote moderate from the printing process. environmental and governance aspects. This doc- alcohol consumption. ument, prepared according to the GRI standards, incorporates for the first time the company’s three The progress made in sustainability has been wide- This publication, using 100% productive origins: Chile, Argentina and the United ly recognized during 2017. For example, for third recycled paper instead of virgin States. consecutive year we were selected to be member fiber paper, has saved: of the Dow Jones Sustainability Index Chile, and During the year we reaffirmed our commitment to we also we achieved the carbon footprint certifi- the implementation of renewable energies, and in cation from Carbon Trust, and Viña Cono Sur ob- this line, Fetzer Vineyards has become the first wine tained the Gold seal of energy efficiency. In matters 4.353 L company in California to operate entirely on clean of corporate governance, Eduardo Guilisasti was OF WATER energy. In Chile, recognizing the potential of our ter- elected “General Manager of a Leading Company in ritory, we signed agreements for the construction of Sustainability” by the organization ALAS20. These 10 photovoltaic plants in several of the company’s recognitions motivate us to continue on this path, kWh estates. understanding sustainability as a key strategic el- 256 ement of our management. OF ENERGY In terms of local development, we renewed the Pro- ductive Alliances program with INDAP, which seeks I invite you to read this report, hoping that you will to advise small grape suppliers and provide them find information of your interest about our vision of 242 kg with better competitiveness tools within the indus- sustainability, and learn more about how we sup- OF WOOD try. Viña Concha y Toro’s Research and Innovation port the fulfillment of the Sustainable Development Center (CII) continues generating and transferring Goals of the United Nations and the Global Com- applied research that enhances technological de- pact Principles. velopment. 149 kg Yours sincerely, OF WASTE 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 22 kg securing their health and safety.

We continued strengthening our relationship with Additionally, the cover used our customers, and we underwent 24 ethical audits Alfonso Larraín Santa María curious matter, a innovative that allowed us to provide objective guarantees on Chairman of Viña Concha y Toro eco-friendly paper made of social and labor requirements at all stages of the potato skin. production process. In this same line, we also re- quested external service contractors to be audited on compliance with the Corporate Ethics Standard. About this

To determine the relevant issues covered by this The external evaluation was based on an online sur- Report report, the company conducted an exhaustive ma- vey, answered by 106 people, including employees, teriality analysis through an internal and external suppliers and other stakeholders, a review of the evaluation. The first one considered the update of sustainability context in the industry, and a bench- the company’s Sustainability Strategy carried out by mark of good reporting practices. the top executives, as well as a prioritization of con- tents 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.

MATERIALITY MATRIX 6th Sustainability Report on the GRI company’s Economic, The report has been Environmental and prepared in accordance Social performance. 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.

REPORT VERIFIED by an independent third party. 1ST REPORT that includes the company’s three productive origins (Chile, Argentina and the United States). 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.

1 A . DI SUP ME PL . IE 8 RS

- Agricultural supplies - International media - Grapes - Local media - Winemaking supplies S R - Packaging O T - External Services S E - Transport and Distribution V N 2 I .

D C N O A M

M S - Neighborhood U R - Financial rating N E associations near D agencies I L Concha y Toro’s T O - Investment Fund Y H facilities E Administrators R - Investment banks - Local authorities where A

H Concha y Toro has

academic institutions

- Senior executive positions - Junior executive positions - Retail - Technical and/or

6 - International distributors administrative positions S . - National distributors E - Temporary employees E C - Trade unions Y L O I L E P N M T E S . - Educational association 3 - Government - Trade Associations Wines - Regulatory authorities of Chile - International organizations - Pro sustainability - Government agencies organizations 5 . - Competitors G OV ER Y NM ET EN I T OC AN S D A VIL UTHO CI RITIES 4. Milestones 2017

Consolidated Investment 3,169 305 sales in innovation employees thousand tCO2e $643,785 worldwide carbon footprint M$2,512,877 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

Viña Concha y Toro Viña Cono Sur Viña Palo Alto Fetzer Vineyards Fetzer Vineyards Top #10 Beverages Energy Efficiency First place in the First “Zero Waste First winery in Category Dow Jones Seal “Great sustainable to Landfill” wine California to SustainabilityTM Gold Category launch of the year” company in the operate 100% with Index Ministry of Energy category Green world renewable energy Awards 2017 The Green Business Production

Viña Concha y Toro has set the objective to maintain its leadership in the wine industry 01 02 03 04 05 by being in harmony with the sustainability VINEYARDS HARVEST WINEMAKING BOTTLING AND DISTRIBUTION GROWING PACKAGING of its operations. AND CARE

The production The process of Controlled Safe packaging of Distribution to cycle starts with the harvesting and fermentation of wine in the different logistics beginning of the grinding the grapes grapes to obtain an formats offered by centers or export to agricultural year on begins at the end optimal oenological the company. finally of March. After the result. reach the SUSTAINABILITY FROM THE VINEYARD TO THE GLASS June 1. The care of the vineyards is harvest, the grapes consumer's Holding Concha y Toro essential for the are transferred glass. preservation of to the wells in the natural resources. winemaking cellars.

55 vineyards. 107 (mill kilos) own 15 winemaking 4 plants. 9,722 hectares grapes. cellars. 240.2 mill. lt. bottled. planted. 194 (mill kilos) own 226.4 mill. lt. grapes. OPERATIONS OPERATIONS IN CHILE Concha y Toro 9 vineyards. 15.3 (mill kilos) own 2 winemaking 1 plant. Holding's 1,140 hectares grapes. cellars. 21.3 mill. lt. bottled. products are planted. 11.5 (mill kilos) 19.7 mill. lt. distributed in 140 purchased grapes. countries TRIVENTO

14 vineyards. 3,5 (mill kilos) own 1 winemaking 1 plant. 462 hectares grapes. cellars. 19.4 mill. lt. bottled. planted. 19 (mill kilos) 15.3 mill. lt. FETZER purchased grapes.

• Drip irrigation for • Provide safety • Incorporation • Certification un- • Reduction of the an efficient use of and good work- of tangential der the BRC and carbon footprint water. ing conditions to modules to filter IFS standards. with the use of • Phytosanitary seasonal workers. wine without • Energy efficiency light bottles. management and • Annual training generating in plants. • Eco-labeling responsible ferti- for workers waste. • Use of certified (Sunrise). lization, keeping involved in the • Organic waste supplies. • Information on the proportions harvest process. is recycled to • 100% industrial responsible between water • Monitoring and make tartaric waste is recycled drinking. and nutrients, to coordination of acid and as a or reused. avoid disturbing the grape harvest compost for water bodies process with reuse. and surrounding grape suppliers. • Sanitization of SUSTAINABILITY ASPECT fields. • Planning of own tanks to prevent • The organic re- and external health and safe- mains of the vines fields to opti- ty incidents. are reused in the mize the use of composting of machinery and fields. energy. Viña Concha y Toro's Contribution to the Sustainable Development Goals (SDG)

Concha y Toro Holding aims to continue being The principles established by the one of the leading wine companies worldwide, Global Compact and the goals developed by the UN for each SDG which is why it has integrated the principles were put together for this specific of the Global Compact and, more recently, purpose, with the activities recently the United Nations’ Sustainable Development elaborated and the sustainability strategy´s own objectives, defined Goals (SDGs) into its internal activities and the according to the organization and pillars of Viña Concha y Toro’s Sustainability its impact. Focus is being placed on Strategy. This, with the purpose of establishing establishing a direct relationship a direct relationship between what the United and therefore being able to maximize the actions that are already taking Nations is trying to achieve and those actions place, and identifying others, where that the company is currently developing the organization could produce and carrying out, aiming to contribute to the meaningful results. realization of the SDGs by 2030. 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. COMMITMENT Objetives 2020 • Reduce by 15% emissions per bottle of wine produced and trans- ported by land • Ensure 100% of key customers’ compliance of the company's Corporate Ethics Standard

COMMITMENT PROGRESS 2017 • Reduce by 10% the consumption of water per glass of wine produced Customers • In 2017, it was 1.07 Kg of CO2 per 750cc bottle, which means a • Eliminate waste to landfill decrease of 5.3% compared to 2016 • Reduce total greenhouse gas emissions in scopes 1 and 2 by 30% • Ethics and sustainability self-evaluation answered by 25 customers PROGRESS 2017 • Reduction of 12% of the total water footprint COMMITMENT Environment • Only a 4% of waste disposed to landfill • Have 100% of key suppliers in full compliance with the company's • In 2017, emissions of scope 1 and 2 were reduced by 6% 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 • Ongoing dissemination and promotion of the Corporate Ethics Stand- hours of training ard, including clauses on compliance with the Code of Ethics and • Improve employees’ level of commitment Supply Chain Conduct in contracts with suppliers and distributors PROGRESS 2017 • The company has encouraged the use of light bottles. Currently • Increased by 3.3% in 2017, resulting in 31 hours of training per capita 97% of bottles used by the company are Ecoglass, which weight People • The level of commitment perceived by employees in the annual sur- less and whose production has a lower environmental impact vey increased by 3% compared to 2016. Work was done to improve • 11 suppliers delivered their carbon footprint in 2017, none of them internal communication and recognition through the leadership with variations greater than 15% program for different job categories

COMMITMENT COMMITMENT • Improve communities’ quality of life through investment in infra- • Raise sustainability attributes for 100% 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 100% 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- Products talks on the company’s different web platforms to more than 900 DAP's Investment Development Program (PDI), and 6 of them approved. 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 Sustainability Strategy 2016-20

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 Create to our partnerships Suppliers. with our Customers.

Have highly Create shared committed value for Employees. Society.

Be a benchmark for the industry in Environmental practices. BIODIVERSITY • In Chile, more than 3,200 hectares of native forest are under Environment conservation plans • Fetzer Vineyards came in second place in the The Green Busi- ness Awards for its contribution to the protection and conservation of biodiversity

01 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 neutraliz-

ing its CO2 emissions produced in maritime transport Viña Concha y Toro is committed to being a • Fetzer Vineyards is the first company certified Carbon Neutral in California

benchmark for the industry in environmental EMISSIONS FOR SCOPE BY VIÑA CONO practices, adopting a culture of sustainability in SUR AND VIÑA CONCHA Y TORO Scope 2 the development of its products. In Chile, greenhouse gas emissions (GHG) 7% decreased by Scope 1 LITERS OF WATER USED TO PRODUCE A 125 ML WINE GLASS 14% WATER CONCHA Y TORO Total GHG • The water footprint de- emissions creased 17% compared to INDUSTRY 3. 5 % 305 the previous year AVERAGE thousand • 100% of the vineyards have 2016 2017 tCO2e drip irrigation system Scope 3 • 76 natural water sources, none 79% affected by the company’s 120 77 64 water use

WASTE OPERATIONS IN CHILE • Concha y Toro recycles or Tones Type of waste Disposal ENERGY reuses 96% of its waste 54,000 Organic 100% recycled or reused • Each liter of wine produced in Chile consumes 0.43 kWh • Bodega Trivento reuses or 2,600 Packaging 100% recycling • Concha y Toro reduced its electricity consumption by 11% and fuel consumption by 8% recycles 86% of its waste • Fetzer reduced by 4% its electrical consumption and by 11% the use of natural gas • Fetzer reuses or recycles 97% 2,904 Household 100% landfill • Viña Cono Sur has the ISO 50.001 certification and obtained the Gold seal of ener- of its waste gy efficiency granted by the Ministry of Energy In terms of ILW, operations in Chile have 5 wastewater treatment plants, including a Wetland biological COMMITMENT TO RENEWABLE ENERGIES system in the Limarí winery. Fetzer Vineyards has a BIDA® BioFilter system, which uses biological organ- • In operations in Chile, the company is working on the implementation of 10 isms such as worms and microbes to treat agro-industrial waters. photovoltaic plants • Fetzer Vineyards has a 100% NCRE matrix The company has a policy that prohibits the Supply Chain use of any enological and/or agricultural supply that contains Genetically Modified Organisms (GMOs), whether it is leased or 02 directly purchased. SUSTAINABLE SCENARIO WITH AND WITHOUT LIGHT PACKAGING BOTTLE IN THE OPERATIONS IN CHILE • Currently 97% of the bottles used by Viña Concha y Toro are light bottles 87,432 made of “ecoglass” 2015 -12,648 Viña Concha y Toro aims to build a relationship 100,080 Difference of trust and transparency with its supply chain,

seeking to achieve an efficient coordination between 107,083 2016 -15,076 suppliers of one or more products in the right 122,159 Difference amounts, the right places and at the right time.

101,295 -14,449 • In Chile, 93% of suppliers are local, distributed throughout the country 2017 115,743 Difference • In Bodega Trivento, 88% of suppliers come from Mendoza, Argentina • In Fetzer Vineyards, 85% of the suppliers come from California, USA. Current (Tons of glass)

Without light bottle (Tons of glass) RESPONSIBLE SUPPLY SUSTAINABLE PRACTICES TRANSFER Our strategic partners have certifications that guarantee their commitment to quality, care for the SUPPLIERS 2017 environment and risk prevention. ACCORDING TO % TYPE OF INTERNAL CATEGORIES ASSESSED ASSESSMENT TYPE OF SUPPLY CERTIFICATION Boxes ISO 9001, ISO 14001, FSC Sustainability Code + Ethics Concha y Toro 34% and Sustainability Self- Capsules ISO 9001; ISO 14001; Assessment + BSCI Code Audit OHSAS 18001; BRC 11 Corks ISO 9001; ISO 22000: FSC Viña Cono Sur 9% Sustainability Code suppliers measured and Labels IFS PAC secure; ISO delivered their carbon Packaging Supplies Ethics and Sustainability 9001; FSC 95% footprint to Concha (Operations in Chile) Self-Assessment Bottles ISO 9001,; ISO 22000; y Toro, none with a ISO 50001 variation of more External Services Ethics and Sustainability 100% than 15% (Operations in Chile) Self-Assessment Caps ISO 9001; ISO 22000; BRC INNOVATION RESPONSIBLE MARKETING Product Viña Concha y Toro’s Research and Innovation Viña Concha y Toro, seeks to promote responsible Center of develops applied technology, favoring drinking through three mechanisms: knowledge transfer through 5 strategic programs, one of which is the design of new products: • Drinkware, an international organization where the company is one of the founding partners, • In the creation of Diablo, chemical-sensorial which provides information and tools to promote studies of benchmarks were developed moderate drinking • The Flavored Base Wines line launched new • APROCOR, a trade association of spirits 03 versions: Berries, Pineapple-Passion Fruit and companies for responsible consumption that Clos de Pirque Sangria brings together the main representatives, im- • Jacked, a new brand of flavored wines devel- porters and producers of alcoholic beverages oped thanks to an thorough research process in the country • Enjoy wine, drink wise, the internal campaign where the company shows its commitment to Through a broad portfolio of products of moderate alcohol consumption excellent quality, the company seeks to satisfy its current consumers while effectively conveying sustainability attributes consistent with the identity of each of the brands.

Thanks to many initiatives, such as the "Enjoy Wine, • Casillero del Diablo, Concha y Toro’s main brand, introduces 2 Go Solar" project, Viña Palo Alto was awarded the new lines: “Red Blend y Diablo”. Special Commendation by the Drink Business mag- • James Suckling awarded 98 points to Don Melchor, the company’s azine, for the sustainable campaign of the year. icon Cabernet Sauvignon • Fetzer Vineyards’ 1,000 Stories is named an Impact Hot Prospect Sunrise, one of the brands of Concha y Toro, has brand for its considerable growth as a differentiating attribute the neutralization of its GHG emissions, which during 2017 were just over

QUALITY 4,600 tCO2e. CERTIFICATIONS For Viña Concha y Toro, caring for the environment while ensuring the quality and excellence of its SUSTAINABLE PRODUCTS wines is a crucial aspect of its operations, and so it has several recognized certifications. COMPANY GMO-FREE ORGANIC* BIODYNAMIC* GLUTEN SUSTAINABLE FREE Concha y Toro x x x Viña Cono Sur has the Organic credentials of Kiwa BCS and the Sustainability Code. Also, in 2017 it was Viña Cono Sur x x x x certified on the ISO 9001: 2015 standard for Quality Quinta Maipo x x x x Management systems. Fetzer x x x x x Vineyards Fetzer is certified by the GSFI Global Food Safety Bodega x x Initiative as well as the CCOF Organic Certification Trivento and the Demeter certification for Biodynamic products and B Corp. (*) Only some products are certified organic. Customers PERCEPTION OF SUSTAINABILITY CUSTOMER SATISFACTION In order to identify opportunities for improvement 65% and enhance the positive aspects of its management, every year customers are invited to partic- 60% ipate on an online survey to identify their level of satisfaction and their degree of loyalty towards the 58% 04 company. In this context, 65% of customers con- sider Viña Concha y Toro cares about sustainability.

2015 2016 2017

Viña Concha y Toro seeks to build long-lasting 44

and trustworthy relationships with its customers 2017 32 through efficiency, quality and transparency. 29 2016 AFTER-SALES MANAGEMENT The management of suggestions, requests or 2015 complaints showed it was 7.8% less than the CLIENT AUDITS previous period. As part of the continuous process of deepening the relationships with with customers, 12 the company underwent a series of audits to guarantee the company’s performance in 11 ethical, environmental and quality requirements. 3 3 4 4

CLIENT AUDITS SUMMARY Supply Chain Logistics Customer Management Management Service Management GHG emissions due to 1 Woolworth 1 Smeta land transport have 3 BSCI 1 Morrinsons been reduced by EFFICIENCY IN CO2 EMISSIONS 6 BSCI For second year in a row, the Multimodal program, which has the objective of reducing GHG emissions by transporting products via rail to ports, transport-

4 Tesco 12% ed 510 tons during 2017, which meant a mitigation of 4.6 tCO2.

2 2 1 Tesco PROMOTION OF SUSTAINABILITY Walmart Tesco • New contracts with clients binds them to comply with the company’s Code of Ethics and Conduct 1 Walmart • 25 clients responded a self-assessment on ethical, social and environmental aspects

2015 2016 2017 TEMPORARY AVERAGE TEMPORARY People WORKERS WORKERS 2017

Fetzer 9

Total 100% 1,314 Trivento of temporary workers 22 05 were trained Operations in Chile 1,283

Viña Concha y Toro seeks to create long-term relations with all those who are part of the company, QUALITY OF LIFE APERRA CON TUS IDEAS through professional development and by fostering The Human Resources management builds a direct PROGRAM relationship with each and every one of the com- Its purpose is to develop and guide employees’ employees’ physical, mental and social well-being. pany’s employees through a series of benefits and initiatives on efficiency and process improve- professional activities, and also develops several ment. During 2017, twelve projects were imple- programs and activities that aim at the quality of mented, three of which were based on the use life of the people that make up the company. of recycled materials.

3,169 1,314 1,115 838 96% RISK PREVENTION (average) of employees It is a transversal aspect and a core element for the are covered by the different company, so during 2017 100% of the employees joint committees of the Personnel Average Contractors of Job positions operations in Chile and Permanent contract: 3,064 Temporary Viña Concha y ﬁlled by women that work in the harvest process were trained. Fixed term contract: 105 Workers Toro and Bodega the USA. Trivento

19% reduction in accidents Concha y Toro 2% reduction of average working days lost • 97% of the personnel has a permanent contract 62% reduction in accidents • 73% of the total personnel correspond to men and 27% to women Viña Cono Sur • 32% of the total personnel are in operative positions 81% reduction of average working days lost • 62% of the total personnel is between 30 and 50 years of age Fetzer 15% Incidence Index Vineyards 4.3 Lost time Index 6.1 accident rate Bodega Trivento 185 Average working days lost Society TRAINING AND EXTENSION Since opening in 2014, the EXTERNAL VISITORS 2017 Center for Research and Inno- TO THE CII vation (CII) has promoted ap- 608 total plied research, technological 395 external development and knowledge 2016 transfer, being a space open 551 06 to the winery’s productive and 1,157 external social environment. total

Concha y Toro Holding understands that its COMMUNITY AND SOCIAL ENVIRONMENT • Each of the facilities (farms, winemaking cellar or plant) has a delegate for community relations, and commercial activity also creates value for the social during 2017 57% of the requests done by the community were approved and productive environment in which it operates. • 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 Therefore, interacting directly with producers, • In the San Vicente de Tagua Tagua, O'Higgins Region, the company lent a sector of the Idahue promoting academic extension, and relating with the 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 community is of great relevance to the company. install 16 photovoltaic panels that allow the generation of 8MWh per year, to cover an important percent- age 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 PRODUCTIVE ALLIANCES FETZER Chimbarongo, about possible frosts WITH SMALL GRAPE GROWERS FETZER ALLIANCES • 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 2015 19 Sola Bee Farms community gardens program to receive the Focus: Strengthen the Productive Alliances population of bees in Bonterra’s biodynamic 2016 29 fields, allowing bees to Focus: Enhance agricultural management feed on healthy flora. EDUCATION Viña Concha y Toro recognizes the value of educa-

2017 29 tion as a means to people’s development and social mobility. Focus: Create commercial links Kaos Sheep Outfit program that allows • During 2017, the Cultívate (Cultivate Yourself) about 2,000 sheep to program began, which generates formal and long- graze on the fields term agreements with educational institutions in of the Californian the districts where the company operates company, which helps • Same as in previous years, the company granted to fertilize the soil. scholarships to 25 young people with outstanding performance through the Fundación Juan Pablo II and the Las Garzas Agricultural School ENVIRONMENT

SUSTAINABILITY STRATEGY 2030 AGENDA VIÑA CONCHA Y TORO Goal 2020 Progress 2017 SDG Specific Objective Goal 2030 S TOWAR S D Ensure E -10% R S sustainability In water -9% Increase water S 6.4 in the

G WATER efficiency D footprint per Variation extraction of O glass of wine water G R

s P

100% 62% Promote the Increase NCRE Renewable Renewable 7.2 NCRE ratio proportion ENERGY energy energy

100% Increase 100% Ensure the Forests with or maintain Plans 15.1 conservation implemented conservation designed of ecosystems plans area • 2 0 1 7 • BIODIVERSITY Improve Improve water industrial 6.3 quality waste water 0 4% ratio/product Waste to

WASTE Landfill landfill Reduce the Increase 12.5 generation recycling As a global company, Viña Concha y Toro of waste rate/product communicates the progress made towards the Incorporate Increase SDGs (Sustainable Development Goals) of the 30% measures 6% climate change Reduction in 13.2 relating to United Nations through this report, produced Reduction actions/risks scope 1 and 2 climate change according to the GRI standard. CLIMATE CHANGE Progress Progress Towards SDG Towards SDG

SUPPLY CHAIN PRODUCT

SUSTAINABILITY STRATEGY SUSTAINABILITY STRATEGY 2030 AGENDA 2030 AGENDA VIÑA CONCHA Y TORO VIÑA CONCHA Y TORO Goal 2020 Progress 2017 SDG Specific Objective Goal 2030 Goal 2020 Progress 2017 SDG Specific Objective Goal 2030

100% Protect labor Key suppliers 58% 100% 3 Increase Increase meeting the rights and 1 In stage 1 of 8.8 compliance New product 9.5 research in research/ Corporate safe work Category assessment with ILO categories the industry revenue INNOVATION

RESPONSIBLE Ethics environment SUPPLY CHAIN Standard

Improve 15% Promote the Increase adoption Decrease 0% 1.6% productivity Footprint 12% 8.2 sustainable 9.4 of clean tCO /product Retentions Retentions through reduction per Reduction 2 QUALITY growth rate bottle technologies innovation CARBON FOOTPRINT

100% 100% 6% Brands with Efficient use Decrease raw Promote Improve Of premium Of the premium identified 100% of natural material/ access to dissemination portfolio portfolio 12.2 attributes Attributes resources product 12.8 information on /communication PACKAGING using "Eco2" using "Eco2" and identified ATTRIBUTES

SUSTAINABLE sustainability campaigns bottles bottles implemented campaigns

Strengthen the 1 25% Phase 1, prevention Strengthen Campaign development 3.5 of harmful campaigns/ implemented

DRINKING of internal alcohol product

RESPONSIBLE in 4 phases campaign consumption Progress Progress Towards SDG Towards SDG

CUSTOMERS PEOPLE

Improve Promote Increase 100% Promote productivity Departments 38% training $22 $ 19.8 sustainable 8.3 training 8.2 through with career Employees policies and /lt /lt growth rate policies innovation plans plans EFFICIENCY IN LOGISTICS COSTS CAREER DEVELOPMENT

Improve 15% Promote the +70% Action plans Increase adoption Decrease productivity Reduction in 12% Level of communicated to 8.2 sustainable 9.4 of clean tCO2e/product through emissions per Reduction engagement 100% management growth rate ENGAGEMENT innovation bottle technologies EFFICIENCY OF CO² EMISSIONS

100% Of customers 45 31 Protect Man-hours of Man-hours of Ensure access complying 15% 100% Increase % of labor rights training per training per 4.3 to formal with the Stage 1 self- 8.8 compliance training and safe person per person per year education Corporate assessment with ILO environment year in Chile Ethical KNOWLEDGE CENTER

INTEGRAL CUSTOMERS Standard 30% 100% Protect labor Sites diagnosed 100% Certified rights and and with 8.8 compliance under SA 8000 safe work external with ILO standard environment verification ETHICAL MANAGEMENT Progress Towards SDG

SOCIETY

SUSTAINABILITY STRATEGY 2030 AGENDA VIÑA CONCHA Y TORO Goal 2020 Progress 2017 SDG Specific Objective Goal 2030

100% Improve Grape growers Increase 50% productivity with an Increase in sustainable 8.2 through increase in productivity growth rate ALLIANCES PRODUCTIVE innovation This document is a summary of productivity the 2017 Sustainability Report, highlighting the company’s 100% main governance, social and Promote Promote training environmental milestones during Relevant 100% stakeholders 8.3 training policies and the period. Reach visiting the policies plans

EXTENSION FOR GRAPE GROWERS center It has been prepared in accordance with the GRI reporting standard, in its Develop comprehensive option, and has Increase % 4 1 infrastructure been verified by an independent Social Program (Viña infrastructure/ 9.1 for people’s third party (Deloitte). programs Palo Alto) person

COMMUNITIES wellbeing The complete document is availbale at:

www.conchaytoro.com/sustentabilidad 100% 94% Ensure access Of graduates Of young Increase % of 4.3 to formal in the labor graduates training education EDUCATION market working