Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Anchoring
• Governance

Environmental Achievements

• 83.4% waste valorization rate
• Improved energy performance: consumption ratio down for 3 years (11.8 kWh/hl of wine produced)
• 82% of sustainability projects launched in 2022 with an average progress of 88%
• Deployment of STILA – artificial intelligence for irrigation on 340 ha

Social Achievements

• Launched 7th edition of the Vignerons et Terroirs d’Avenir competition with a new partner: Crédit Agricole
• 100% of employees sensitized to the ESG vision
• 98% of managers trained in “AdVini management and values”
• 40 hours of training (vs. 34.6 hours on average in 2022)

Governance Achievements

• ESG projects integrated into 100% of managers' objectives
• Structured and deployed external communication plan
• Return of roadshows in 100% of basins

Climate Goals & Targets

Environmental Challenges

• Increased raw material prices (glass, cardboard, paper, aluminum)
• Higher salary increases
• Rising interest rates
• Export market barriers (Russia, Ukraine, Belarus, China)
• Low 2021 harvest increasing wine prices, particularly in Burgundy and for Southern white wines
• Integration of KZ in July 2022 and BVC in April 2021 with lower margins than AdVini

Mitigation Strategies

• Progressive price increases
• Focus on high-identity and premium wines
• Remaining agile to face economic and geopolitical uncertainty, generalized inflation, and consumer behavior

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Increased salaries in 2022 to support employee purchasing power; strengthened commercial and marketing teams.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Significant increase in raw material prices and interest rates; return of inflation impacting consumption, particularly in large-scale retail.

Mitigation Strategies

• Adapting to market conditions and reasonably adjusting prices to reflect increased costs; focusing on growth through asset quality, employee engagement, ESG policy deployment, and offer optimization.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: KPMG AUDIT SUD-EST SAS and ERNST & YOUNG Audit

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Social responsibility
• Governance

Environmental Achievements

• Transitioning vineyards to agro-ecological practices
• Closely managing water consumption, energy performance, and eco-design of wines at production sites

Social Achievements

• Strengthening commercial and marketing teams (+4%)
• Maintaining consumer sales stability in Quebec despite import reduction

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Difficult year due to global challenges in wine exports and consumption
• Decreased activity in most European Off Trade markets (UK, German-speaking countries, Benelux)
• Significant impact of economic situation in China on Asian market (-52.2%) resulting in high stock levels
• Decrease in imports to Canada due to massive stock reduction policy
• Increased costs of dry materials, energy, and general inflation
• Increased salaries
• Devaluation of the South African Rand
• Exceptional depreciation of wines from Bordeaux Châteaux
• Depreciation of goodwill and brands in the digital sector
• Increased financial charges due to rising interest rates
• High stock levels unrelated to activity
• Devaluation of ZAR impacting equity

Mitigation Strategies

• Price increases
• Improved product mix
• Operational recovery of commercial activity with focus on margin improvement
• Reduction of costs and improvement of working capital requirements in 2024

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-design of wines

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Inflationary context impacting financial performance, including significant decrease in export sales for French still wines, increased costs (salaries, energy, external expenses), devaluation of the South African Rand, and rapidly rising interest rates.

Mitigation Strategies

• Implementing the "Accélération Orbis" plan, focusing on ESG, with investments in sales and marketing to improve product mix, accelerate organic growth, increase market share, and enhance sales profitability. Actively pursuing simplification and rationalization of the organization to reduce operating costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Decarbonation
• Governance

Environmental Achievements

• Implementation of a Science Based Target initiative (SBTi) to reduce carbon emissions.
• Reduction of emissions by -21% (119.5 kgCO2e/hl to 94.6 kgCO2e/hl) between 2021 and 2035 (target).

Social Achievements

• Reactivation of AdVini's historical training program via a Learning Management System.
• Focus on employee training and development.

Governance Achievements

• Alignment of ESG reporting perimeter with financial reporting perimeter.
• Preparation for CSRD (Corporate Sustainability Reporting Directive) compliance.

Climate Goals & Targets

Environmental Challenges

• Increasingly demanding client specifications regarding sustainability.
• Strengthening global and thematic regulations around sustainable development.
• Market deflation on service wines.

Mitigation Strategies

• Implementation of SBTi strategy.
• Cost reduction policies (optimization of processes and performance).
• Focus on 6 key countries to improve product mix and increase premium wine sales.
• Progressive integration of financial costs into production costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SBTi

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed