Climate Change Data

The Duckhorn Portfolio, Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1801 tCO2e/year
Scope 1 Emissions:581 tCO2e/year
Scope 2 Emissions:1220 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:93% (grid electricity)
Total Energy Consumption:26,576 GJ/year
Water Consumption:Not disclosed
Waste Generated:100-200 tons/year (compost)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Sustainable Agriculture
  • Water Stewardship
  • Responsible Packaging
  • Diversity, Equity and Inclusion
  • Human Capital Management
  • Health and Safety
  • Responsible Beverage Service Practices
  • Enterprise Risk Management and Strategic Execution
  • Data Privacy and Cybersecurity

Environmental Achievements

  • Transitioned 138 metric tons of CO2 to 134,521 kWh of clean energy through fleet electrification.
  • Completed a 400 kW solar electric power installation at Migration Winery, projected to produce 612,630 kWh annually.
  • Piloted a third-party verified Carbon Offset Program for international transport emissions, supporting Klamath National Forest restoration.
  • Contracted with a new glass supplier in Mexico, progressing towards 100% North American glass sourcing.
  • Began formal water monitoring at all production facilities.

Social Achievements

  • 99% employee retention rate at Waterfowl Winery.
  • 56% of leadership positions held by women.
  • Hosted more than 150 safety tailgates.
  • Increased participation in tuition reimbursement program.
  • Launched an internal welcome program for new hires (Navigator Program) with 50 new hires participating in FY22.
  • 33 new hires were internally referred in FY22.
  • Average training completion rate of 92% across three DE&I modules.

Governance Achievements

  • Formalized ESG review and reporting process and oversight structure.
  • Conducted a broad stakeholder inquiry to assess ESG priorities.
  • Aligned ESG disclosures with TCFD framework and SASB standards for Alcoholic Beverages and Agricultural Products.
  • Implemented a comprehensive Whistleblower Policy.
  • Engaged with stockholders through various methods including one-on-one meetings, investor conferences, and earnings calls.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 75% renewable energy at Migration Winery.
Short-term Goals:
  • Lightweighting 49% of bottle molds.
  • Formalize water consumption targets using CSWA template.

Environmental Challenges

  • Climate change impacts on farming operations (extreme temperatures, precipitation, droughts, wildfires).
  • Supply chain disruptions.
  • Increasing COGS and labor costs due to inflation.
  • Cybersecurity threats.
Mitigation Strategies
  • Implementation of drought-tolerant rootstocks and grape varietals.
  • Robust R&D program for climate-related agricultural development.
  • Diversified grape sourcing from Estate vineyards and approximately 300 grower vineyards.
  • Strategic contracts and partnerships with suppliers.
  • Advanced forecasting techniques and safety stock to buffer against supply chain issues.
  • Investments in IT surveillance, resiliency, and employee training to address cybersecurity vulnerabilities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sourcing 100% North American glass (in progress)
  • Supplier questionnaires incorporating environmental and safety questions.

Climate-Related Risks & Opportunities

Physical Risks
  • Wildfires
  • Droughts
  • Extreme weather events
Transition Risks
  • Policy and legal changes
  • Technology risks
  • Market shifts
Opportunities
  • Development of climate-resilient agricultural practices
  • Expansion of renewable energy sources

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: ISO 9001 (Waterfowl Winery), LEED Gold (Goldeneye Winery)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 5: Gender Equality
  • Goal 6: Clean Water and Sanitation
  • Goal 13: Climate Action
  • Goal 12: Responsible Consumption and Production

Duckhorn's initiatives contribute to these goals through various programs and practices detailed in the report.

Sustainable Products & Innovation

  • BioFoam packaging
  • Enviro Ice packs

Awards & Recognition

  • 2022 ESG Program (Social Impact Awards)
  • 2022 Community Affairs (Honorable Mention, Social Impact Awards)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2,267 Metric Tons of CO2e
Scope 1 Emissions:1,037 Metric Tons of CO2e
Scope 2 Emissions:1,230.3 Metric Tons of CO2e
Renewable Energy Share:48% (of energy consumed supplied from grid electricity)
Total Energy Consumption:33,123 GigaJoules
Water Consumption:10,745,074.50 gallons
Waste Generated:64,600 tons (organic matter compost)
Carbon Intensity:5.64 Metric Tons CO2e per Million Dollars Net Sales

ESG Focus Areas

  • Climate Risk Management
  • Energy Efficiency
  • Carbon Footprint
  • Water Stewardship
  • Responsible Packaging
  • Biodiversity
  • Human Capital Management
  • Professional Development
  • Diversity, Equity and Inclusion
  • Health and Safety
  • Responsible Beverage Service Practices
  • Community Engagement and Philanthropy
  • Enterprise Risk Management
  • Governance Guidelines, Policies and Practices
  • Data Privacy and Cybersecurity

Environmental Achievements

  • Established clear metrics for Scope 1 and Scope 2 Greenhouse Gas emissions.
  • Reviewed energy projects beneficial from an energy-use perspective while providing cost savings, leading to more solar power and energy-efficient equipment.
  • Implemented rigorous water monitoring at facilities, showing water usage in line with or better than industry averages (1,453.92 gallons of water used per ton crushed in FY23).
  • Completed a new 400 kW solar electric power installation at Migration Winery, producing 541,142 kWh and offsetting approximately 383 metric tons of carbon annually.
  • Offset carbon emissions associated with the international transportation of Kosta Browne Burgundy Series wines (approximately 6.60 metric tons of carbon).

Social Achievements

  • Launched the Margaret Duckhorn Excellence Award to celebrate employees.
  • Supported professional development, tuition reimbursement, hybrid work options, and a Volunteer Time Off program.
  • Achieved 100% employee retention at Waterfowl Winery in FY23.
  • 52% of leadership positions held by female employees.
  • Employee turnover below industry average; 30% of employees have been with the company for five years or more.

Governance Achievements

  • Formalized ESG-specific goals.
  • Improved ESG reporting process, KPI development, and oversight structure.
  • Implemented formalized oversight of ESG initiatives to increase transparency, streamline management, and enhance communication.

Climate Goals & Targets

Long-term Goals:
  • Decrease our product footprint in our supply chain.
  • Reduce water withdrawn per ton crushed at our production facilities.
Medium-term Goals:
  • Continue to decrease emissions caused by our supply chain.
Short-term Goals:
  • Using solar panels at our production facilities, power over 30% of the energy needed for our production facilities annually.
  • Increase biodiversity in the soils of our Estate properties.
  • Maintain and enhance gender representation in managerial positions.
  • Decrease our Total Recordable Incident Rate (TRIR) three-year rolling average to be at or below industry level.
  • Increase Volunteer Time Off (VTO) hours in our community by employees.
  • Enact policies consistent with our business worldview.

Environmental Challenges

  • Supply chain disruptions due to climate events (e.g., extreme weather, drought, wildfires).
  • Maintaining revenue growth.
  • Successfully integrating acquisitions.
  • Sub-optimal growth management.
  • Sub-optimal investor communications.
  • Attracting and retaining talent.
Mitigation Strategies
  • Long-term cultivation of a strong and agile supply chain with diversified grape sourcing.
  • Thoughtful price increases, strong sales teams, and consumer activation.
  • Comprehensive integration checklist, governance, and support; learning from past acquisitions.
  • Weekly management meetings, disciplined M&A process, and system enhancements.
  • Consistent messaging across investor communications; maximizing time with analysts and investors.
  • Increased transparency of employee benefits, referral bonus program, competitive benefits and wages, and a vibrant culture.

Supply Chain Management

Supplier Audits: 0% non-conformance rate for social and environmental audit standards

Responsible Procurement
  • Longstanding relationships with growers; oversight structure to ensure quality and sustainable practices; encouragement of third-party sustainability certifications.

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters (fires, floods, earthquakes)
  • Inclement weather, drought, pests, plant diseases
Transition Risks
  • Policy and legal risks (environmental requirements, market pressures)
  • Technology risks (IT system failures)
Opportunities
  • Development of energy-efficient products
  • Investment in renewable energy

Reporting Standards

Frameworks Used: TCFD, SASB, UN SDGs

Certifications: ISO 9001:2015 (Waterfowl Winery), LEED Gold Certification (Goldeneye Winery)

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)
  • Goal 15 (Life on Land)

Initiatives contribute to these goals through water stewardship, renewable energy investments, carbon reduction, and biodiversity conservation.

Sustainable Products & Innovation

  • Lightweight bottles
  • Enviro Ice packs