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SUSTAINABILITY REPORT 2017
EXECUTIVE SUMMARY
100% Renewable energy
100% Responsible with the environment
SUSTAINABILITY REPORT 2017
EXECUTIVE SUMMARY
RECYCLEDMade from
recycled material
Viña Concha y Toro S.A.
RUT: 90.227.000-0Head Office: Avda. Nueva Tajamar 481, Torre Norte, piso N°15, Las Condes, Santiago, ChileTelephone: (56-2) 2476 5000Fax: (56-2) 22036733P.O. Box: 213, Correo Central, SantiagoWebsite: www.conchaytoro.com
For further information or suggestions on how to improve the next report, please contact:
Valentina Lira M.Sustainability [email protected]
Dear all:
On behalf of Viña Concha y Toro, I am pleased to present our sixth Sustainability Report, which ac-counts for the company’s performance on social, environmental and governance aspects. This doc-ument, 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 ter-ritory, 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 Pro-ductive Alliances program with INDAP, which seeks to advise small grape suppliers and provide them with better competitiveness tools within the indus-try. Viña Concha y Toro’s Research and Innovation Center (CII) continues generating and transferring applied research that enhances technological de-velopment.
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.
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 re-quested external service contractors to be audited on compliance with the Corporate Ethics Standard.
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 wide-ly recognized during 2017. 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 certifi-cation from Carbon Trust, and Viña Cono Sur ob-tained 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 el-ement 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 sup-port the fulfillment of the Sustainable Development Goals of the United Nations and the Global Com-pact Principles.
Yours sincerely,
Alfonso Larraín Santa María Chairman of Viña Concha y Toro
Letter from the Chairman
Additionally, the cover used curious matter, a innovative eco-friendly paper made of potato skin.
This publication, using 100% recycled paper instead of virgin fiber paper, has saved:
4.353 L OF WATER
242 kgOF WOOD
256 kWhOF ENERGY
149 kgOF WASTE
22 kg
The size of this publication allows an optimum use of the sheet of paper, reducing waste from the printing process.
To determine the relevant issues covered by this report, the company conducted an exhaustive ma-teriality 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 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
The external evaluation was based on an online sur-vey, answered by 106 people, including employees, suppliers and other stakeholders, a review of the sustainability context in the industry, and a bench-mark of good reporting practices.
About this Report
6th Sustainability Report on the
company’s Economic, Environmental and
Social performance.
1ST REPORT that includes the company’s three
productive origins (Chile, Argentina and the United States).
REPORT VERIFIED
by an independent third party.
GRIThe 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.
Stakeholders
- Agricultural supplies
- Grapes
- Winemaking supplies
- Packaging
- External Services
- Transport and Distribution
1. SUPPLIERS
- Neighborhood
associations near
Concha y Toro’s
facilities
- Local authorities where
Concha y Toro has
academic institutions
2. COMMUNITY
- Senior executive positions
- Junior executive positions
- Technical and/or
administrative positions
- Temporary employees
- Trade unions
3. EMPLOYEES
- Educational association
- Trade Associations Wines
of Chile
- Pro sustainability
organizations
- Competitors
4. CIVI
L SOC
IETY
5. GOVERNMENT AND AUTHORITIES
- Government
- Regulatory authorities
- International organizations
- Government agencies
6. CLIENTS
- Retail
- International distributors
- National distributors
7. SHAREHOLDERS AND INVESTORS
- Financial rating
agencies
- Investment Fund
Administrators
- Investment banks
8. ME
DIA
- International media
- Local media
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.
Consolidated
sales
$643,785 million
BSCI
24 ethical audits
under the BSCI
standard in wine
cellars, plants and
vineyards
Viña Concha y Toro
Top #10 Beverages
Category Dow Jones
SustainabilityTM
Index
Almaviva
100 points
Top 100 Wine of
2017 James Suckling
Bodega Trivento N°1
winery in Europe
Global Data
Viña Palo Alto
First place in the
“Great sustainable
launch of the year”
category Green
Awards 2017
The Green Business
Viña Cono Sur
Energy Efficiency
Seal
Gold Category
Ministry of Energy
Investment
in innovation
M$2,512,877
Milestones 2017
Fetzer Vineyards
Momentum For Change
United Nations
Secretariat for
Climate Change
Fetzer Vineyards
First “Zero Waste
to Landfill” wine
company in the
world
Viña Cono Sur
Chilean Producer
of the Year
Wine & Spirits
Competition
Fetzer Vineyards
First winery in
California to
operate 100% with
renewable energy
3,169 employees
worldwide
305 thousand tCO2e
carbon footprint
01 02 0403VINEYARDSGROWING AND CARE
The production cycle starts with the beginning of the agricultural year on June 1. The care of the vineyards isessential for thepreservation of natural resources.
55 vineyards.9,722 hectares planted.
9 vineyards.1,140 hectares planted.
14 vineyards.462 hectares planted.
• Drip irrigation for an efficient use of water.
• Phytosanitary management and responsible ferti-lization, keeping the proportions between water and nutrients, to avoid disturbing water bodies and surrounding fields.
• The organic re-mains of the vines are reused in the composting of fields.
BOTTLING AND PACKAGING
Safe packaging of wine in the different formats offered by the company.
4 plants.240.2 mill. lt. bottled.
1 plant.21.3 mill. lt. bottled.
1 plant.19.4 mill. lt. bottled.
• Certification un-der the BRC and IFS standards.
• Energy efficiency in plants.
• Use of certified supplies.
• 100% industrial waste is recycled or reused.
HARVEST
The process of harvesting and grinding the grapes begins at the end of March. After the harvest, the grapesare transferred to the wells in the winemaking cellars.
107 (mill kilos) own grapes.194 (mill kilos) own grapes.
15.3 (mill kilos) own grapes.11.5 (mill kilos) purchased grapes.
3,5 (mill kilos) own grapes.19 (mill kilos) purchased grapes.
• Provide safety and good work-ing 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 opti-mize the use of machinery and energy.
WINEMAKING
Controlled fermentation ofgrapes to obtain an optimal oenological result.
15 winemaking cellars.226.4 mill. lt.
2 winemaking cellars.19.7 mill. lt.
1 winemaking cellars.15.3 mill. lt.
• 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 safe-ty incidents.
DISTRIBUTION
Distribution to logisticscenters or export to finallyreach the consumer's glass.
Concha y Toro Holding's
products aredistributed in 140
countries
• Reduction of the carbon footprint with the use of light bottles.
• Eco-labeling (Sunrise).
• Information on responsible drinking.
05
FETZER
TRIVENTO
OPERATIONS
IN CHILE
SUSTAINABILITY ASPECT
SUSTAINABILITY FROM THE VINEYARD TO THE GLASS Holding Concha y Toro
ProductionViña 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.
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.
Viña Concha y Toro's Contribution to the Sustainable Development Goals (SDG)
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.
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.
Viña Concha y Toro's Contribution to the Sustainable Development Goals (SDG)
Customers
Supply Chain
Products
COMMITMENT
• 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
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
COMMITMENT
• Have 100% 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
PROGRESS 2017
• Ongoing dissemination and promotion of the Corporate Ethics Stand-ard, including clauses on compliance with the Code of Ethics and Conduct in contracts with suppliers and distributors
• The company has encouraged the use of light bottles. Currently 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
• Raise sustainability attributes for 100% of the Concha y Toro brands• Promote, create and strengthen a healthy relationship with wine con-
sumption, based on a corporate program of Responsible Drinking• Extend Concha y Toro’s participation in other product categories
PROGRESS 2017
• Sustainability attributes were built for 100% of Concha y Toro products• The “Enjoy Wine, Take Responsibility” (“Disfruta el vino, toma
con responsabilidad”) campaign was launched, establishing Viña Concha y Toro’s principles of moderate drinking through informative talks on the company’s different web platforms to more than 900 employees and external collaborators.
• Ongoing work with the Drinkaware Foundation• The Drug Use and Alcohol Abuse Prevention Program for employees
continued• New Coolers and Sangría products were launched, belonging to the
Flavored base wines category
Environment
People
Society
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
• 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
• Strengthen employees’ different competencies, increasing the hours of training
• Improve employees’ level of commitment
PROGRESS 2017
• Increased by 3.3% in 2017, resulting in 31 hours of training per capita • The level of commitment perceived by employees in the annual sur-
vey increased by 3% compared to 2016. Work was done to improve internal communication and recognition through the leadership program for different job categories
COMMITMENT
• Improve communities’ quality of life through investment in infra-structure and social programs
• Increase the transfer of R&D knowledge to grape growers and the industry in general
• Improve grape growers’ business and property management skills
PROGRESS 2017
• Viña Palo Alto's Enjoy Wine, Go Solar Program provided the Santa Laura de Lo Figueroa School with 16 photovoltaic panels that gen-erate 8 MWh per year to help cover their energy consumption
• Grape growers were supported and 12 projects were submitted to IN-DAP's Investment Development Program (PDI), and 6 of them approved.
• 5 grape growers built deep wells and two of them implemented photovoltaic irrigation projects
• The number of grape growers participating in the Productive Alli-ances Program increased to 29
Objetives 2020
Sustainability Strategy 2016-20Each 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
Environmentalpractices.
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 Busi-
ness Awards for its contribution to the protection and conserva-tion of biodiversity
CARBON FOOTPRINTMEASURED 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• Fetzer Vineyards is the first company certified Carbon Neutral in California
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
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 organ-isms such as worms and microbes to treat agro-industrial waters.
In Chile, greenhouse gas emissions (GHG)
decreased by
3.5%
EMISSIONS FOR SCOPE BY VIÑA CONO SUR AND VIÑA CONCHA Y TORO
79%
14%
7%Scope 2
Scope 1
Scope 3
Total GHG emissions
305 thousand tCO2e
OPERATIONS IN CHILE
Tones Type of waste Disposal
54,000 Organic 100% recycled or reused
2,600 Packaging 100% recycling
2,904 Household 100% landfill
Environment
01Viña 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 de-
creased 17% compared to the previous year
• 100% of the vineyards have drip irrigation system
• 76 natural water sources, none affected by the company’s water use
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 50.001 certification and obtained the Gold seal of ener-
gy 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 100% NCRE matrix
LITERS OF WATER USED TO PRODUCE A 125 ML WINE GLASSCONCHA Y TORO
20172016
INDUSTRYAVERAGE
6477120
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
Without light bottle (Tons of glass)
Current (Tons of glass)
2015
2016
2017
87,432
100,080
107,083
122,159
101,295
115,743
-12,648Difference
-15,076Difference
-14,449Difference
TYPE OF SUPPLY CERTIFICATION
Boxes ISO 9001, ISO 14001, FSC
Capsules ISO 9001; ISO 14001;
OHSAS 18001; BRC
Corks ISO 9001; ISO 22000: FSC
Labels IFS PAC secure; ISO
9001; FSC
Bottles ISO 9001,; ISO 22000;
ISO 50001
Caps ISO 9001; ISO 22000; BRC
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%
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.
Supply Chain
02Viña 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.
• 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.
RESPONSIBLE SUPPLYSUSTAINABLE PRACTICES TRANSFER
SUPPLIERS ACCORDING TO INTERNAL CATEGORIES
2017
% ASSESSED
TYPE OF ASSESSMENT
Concha y Toro 34%
Sustainability Code + Ethics
and Sustainability Self-
Assessment + BSCI Code Audit
Viña Cono Sur 9% Sustainability Code
Packaging Supplies
(Operations in Chile)95%
Ethics and Sustainability
Self-Assessment
External Services
(Operations in Chile)100%
Ethics and Sustainability
Self-Assessment
INNOVATIONViña 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 devel-oped thanks to an thorough research process
RESPONSIBLE MARKETINGViña 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, im-porters 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
Thanks to many initiatives, such as the "Enjoy Wine, Go Solar" project, Viña Palo Alto was awarded the Special Commendation by the Drink Business mag-azine, 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 tCO2e.
COMPANY GMO-FREE ORGANIC* BIODYNAMIC* GLUTEN FREE
SUSTAINABLE
Concha y Toro x x x
Viña Cono Sur x x x x
Quinta Maipo x x x x
Fetzer
Vineyardsx x x x x
Bodega
Triventox x
SUSTAINABLE PRODUCTS
(*) Only some products are certified organic.
Product
03Through 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.
• 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
QUALITYCERTIFICATIONS
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 prod-ucts and B Corp.
CUSTOMER SATISFACTIONIn order to identify opportunities for improvement and enhance the positive aspects of its manage-ment, every year customers are invited to partic-ipate on an online survey to identify their level of satisfaction and their degree of loyalty towards the company. In this context, 65% of customers con-sider Viña Concha y Toro cares about sustainability.
AFTER-SALES MANAGEMENT The management of suggestions, requests or complaints showed it was 7.8% less than the previous period.
EFFICIENCY IN CO2 EMISSIONSFor second year in a row, the Multimodal program, which has the objective of reducing GHG emissions by transporting products via rail to ports, transport-ed 510 tons during 2017, which meant a mitigation of 4.6 tCO2.
201720162015
58%
60%
65%
PERCEPTION OF SUSTAINABILITY
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
GHG emissions due to land transport have been reduced by
12%
2017
2016
2015
Supply Chain Management
Logistics Management
Customer Service Management
11
3229
12
44
3 4 43
Customers
04Viña Concha y Toro seeks to build long-lasting and trustworthy relationships with its customers through efficiency, quality and transparency.
CLIENT AUDITSAs 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.
2 2 1
1
1
1
4
6
3
1
20162015
Walmart
Tesco
TescoTesco
BSCI
BSCI Morrinsons
SmetaWoolworth
Walmart
2017
CLIENT AUDITS SUMMARY
TEMPORARY WORKERS
QUALITY OF LIFEThe Human Resources management builds a direct relationship with each and every one of the com-pany’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.
RISK PREVENTIONIt is a transversal aspect and a core element for the company, so during 2017 100% of the employees that work in the harvest process were trained.
APERRA CON TUS IDEAS PROGRAMIts purpose is to develop and guide employees’ initiatives on efficiency and process improve-ment. During 2017, twelve projects were imple-mented, three of which were based on the use of recycled materials.
100%of temporary workers
were trained
Concha y Toro19% reduction in accidents
2% reduction of average working days lost
Viña Cono Sur62% reduction in accidents
81% reduction of average working days lost
Fetzer
Vineyards
15% Incidence Index
4.3 Lost time Index
Bodega Trivento6.1 accident rate
185 Average working days lost
96% (average) of employees
are covered by the different joint committees of the operations in Chile and
the USA.
AVERAGE TEMPORARY WORKERS 2017
1,283
22
9Fetzer
Trivento
Operationsin Chile
Total
1,314
People
05Viña 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.
• 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
3,169
PersonnelPermanent contract: 3,064Fixed term contract: 105
Average Temporary Workers
Contractors of Viña Concha y Toro and Bodega
Trivento
Job positions filled by women
1,314 1,115 838
COMMUNITY AND SOCIAL ENVIRONMENT• Each of the facilities (farms, winemaking cellar or plant) has a delegate for community relations, and
during 2017 57% 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 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 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
EDUCATIONViña Concha y Toro recognizes the value of educa-tion as a means to people’s development and social mobility.
• During 2017, the Cultívate (Cultivate Yourself) program began, which generates formal and long-term 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
TRAINING AND EXTENSION
2016
2017
608395
5511,157
total
external
externaltotal
Since opening in 2014, the Center for Research and Inno-vation (CII) has promoted ap-plied research, technological development and knowledge transfer, being a space open to the winery’s productive and social environment.
EXTERNAL VISITORS TO THE CII
Society
06Concha 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 FETZER ALLIANCES
2015
2016
2017
19
29
29
Focus: Strengthen the Productive Alliances
Focus: Enhance agricultural management
Focus: Create commercial links
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.
ENVIRONMENT
SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO
2030 AGENDA
Goal 2020 Progress 2017 SDG Specific Objective Goal 2030
WATER
-10% In water
footprint per
glass of wine
-9% Variation
6.4
Ensure
sustainability
in the
extraction of
water
Increase water
efficiency
ENERGY 100%
Renewable
energy
62% Renewable
energy
7.2Promote the
NCRE ratio
Increase NCRE
proportion
BIODIVERSITY
100% Forests with
implemented
plans
100% Plans
designed
15.1Ensure the
conservation
of ecosystems
Increase
or maintain
conservation
area
WASTE 0
Waste to
landfill
4% Landfill
6.3Improve water
quality
Improve
industrial
waste water
ratio/product
12.5Reduce the
generation
of waste
Increase
recycling
rate/product
CLIMATE CHANGE
30% Reduction in
scope 1 and 2
6% Reduction
13.2
Incorporate
measures
relating to
climate change
Increase
climate change
actions/risks
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.
PRO
GRESS TOWARDS SDG
s
• 2 0 1 7 •
PRODUCT
SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO
2030 AGENDA
Goal 2020 Progress 2017 SDG Specific Objective Goal 2030
INNOVATION
3New product
categories
1 Category
9.5Increase
research in
the industry
Increase
research/
revenue
QUALITY
0%Retentions
1.6% Retentions
8.2
Improve
productivity
through
innovation
Increase
sustainable
growth rate
SUSTAINABLE
ATTRIBUTES
100% Brands with
identified
attributes
and
implemented
campaigns
100% 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
Progress Towards SDG
SUPPLY CHAIN
SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO
2030 AGENDA
Goal 2020 Progress 2017 SDG Specific Objective Goal 2030
RESPONSIBLE
SUPPLY CHAIN
100% Key suppliers
meeting the
Corporate
Ethics
Standard
58% In stage 1 of
assessment
8.8
Protect labor
rights and
safe work
environment
100%
compliance
with ILO
CARBON FOOTPRINT
15% Footprint
reduction per
bottle
12% Reduction
9.4
Promote the
adoption
of clean
technologies
Decrease
tCO2/product
PACKAGING
100% Of premium
portfolio
using "Eco2"
bottles
6% Of the premium
portfolio
using "Eco2"
bottles
12.2Efficient use
of natural
resources
Decrease raw
material/
product
Progress Towards SDG
PEOPLE
SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO
2030 AGENDA
Goal 2020 Progress 2017 SDG Specific Objective Goal 2030
CAREER DEVELOPMENT
100% Departments
with career
plans
38% Employees
8.3Promote
training
policies
Promote
training
policies and
plans
ENGAGEMENT
+70% Level of
engagement
Action plans
communicated to
100% management8.2
Improve
productivity
through
innovation
Increase
sustainable
growth rate
KNOWLEDGE CENTER
45 Man-hours of
training per
person per
year
31 Man-hours of
training per
person per year
in Chile
4.3Ensure access
to formal
education
Increase % of
trainingETHICAL MANAGEMENT
100% Certified
under SA 8000
standard
30% Sites diagnosed
and with
external
verification
8.8
Protect labor
rights and
safe work
environment
100%
compliance
with ILO
Progress Towards SDG
CUSTOMERS
SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO
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
EFFICIENCY OF
CO² EMISSIONS
15% Reduction in
emissions per
bottle
12% Reduction
9.4
Promote the
adoption
of clean
technologies
Decrease
tCO2e/product
INTEGRAL CUSTOMERS 100%
Of customers
complying
with the
Corporate
Ethical
Standard
15% Stage 1 self-
assessment
8.8
Protect
labor rights
and safe
environment
100%
compliance
with ILO
Progress Towards SDG
SOCIETY
SUSTAINABILITY STRATEGYVIÑA CONCHA Y TORO
2030 AGENDA
Goal 2020 Progress 2017 SDG Specific Objective Goal 2030
PRODUCTIVE
ALLIANCES
100% Grape growers
with an
increase in
productivity
50% Increase in
productivity
8.2
Improve
productivity
through
innovation
Increase
sustainable
growth rate
EXTENSION FOR
GRAPE GROWERS 100%
Relevant
stakeholders
visiting the
center
100% Reach
8.3Promote
training
policies
Promote training
policies and
plans
COMMUNITIES
4 Social
programs
1 Program (Viña
Palo Alto)
9.1
Develop
infrastructure
for people’s
wellbeing
Increase %
infrastructure/
person
EDUCATION 100%
Of graduates
in the labor
market
94% Of young
graduates
working
4.3Ensure access
to formal
education
Increase % of
training
Progress Towards SDG
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:
www.conchaytoro.com/sustentabilidad