Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Recycled circa 230 tons of waste
• Sequestered over 1,600 tons of CO2 via Amorim-cork partnership
• Planted over 1,000 trees

Social Achievements

• Remained among the largest employers in disadvantaged areas of Moldova
• Donated to hospitals and supported charities
• Maintained job security for employees during uncertain times
• Supported various sports activities, including sponsorship of the Moldovan National Olympic Committee
• Contributed MDL 2,000,000 (RON 500,000) to a fund combating COVID-19

Governance Achievements

• Implemented a zero-tolerance policy on bribery and corruption
• Complies with all labor laws
• Promotes equal opportunities for employees

Climate Goals & Targets

Environmental Challenges

• Increasing risks of water distress
• COVID-19 pandemic

Mitigation Strategies

• Increased attention to forestation efforts
• Salary reductions by management to supplement donations and protect jobs
• Chateau Purcari facility used as a COVID-19 vaccination site

Supply Chain Management

Responsible Procurement

• Choosing reputable suppliers for agrochemicals and oenological materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: ISO 22000:2005 (Food Safety Management Systems), ISO 9001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recycled more than 235 tons of waste.
• Doubled the quantity of sequestered CO2 to a total of 3,567 tons via partnership with Amorim Cork.
• Planted over 4,000 trees in Moldova and Romania.

Social Achievements

• Provided temporary accommodation to over 4,000 Ukrainian refugees.
• Offered aid to more than 11,000 refugees crossing the border.
• Donated to hospitals and supported charities.
• Launched Purcari Wineries’ Internship Program.

Governance Achievements

• Updated its Remuneration policy for Board of Directors and management team.
• Applies the principles defined in the Corporate Governance Code (CGC) of the Bucharest Stock Exchange (BVB).
• Promotes a zero-tolerance policy to bribery and corruption.

Climate Goals & Targets

Environmental Challenges

• Persisting risk of water distress in Moldova.
• Challenges related to the war in Ukraine impacting operations and refugee support.

Mitigation Strategies

• Continued forestation efforts in Moldova and Romania.
• Established a help-center and 24/7 contact line to support Ukrainian refugees.
• Provided accommodation at Chateau Purcari and other locations for refugees.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizes suppliers offering energy-efficient solutions.

Climate-Related Risks & Opportunities

Physical Risks

• Water distress

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015, ISO 22000:2005, ISO:9001:2015 HU 06/1763, ISO22000:2018 HU 11/6104 and ISO 22000:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The company mentions aligning its business model with the UN SDGs but doesn't specify which goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Community Development

Environmental Achievements

• Installed an intelligent, fully automated subsurface drip irrigation system covering 200 ha of vineyards (with option to extend to 500 ha).
• Installed a Photovoltaic System on the rooftop of Purcari Winery’s production site, supplying 15% of the winery’s electricity consumption.
• Converted 25 ha of vineyards to organic farming.

Social Achievements

• Actively supported Ukrainian refugees, providing accommodation and essential goods.
• Launched the Purcari Foundation, a charity fund focused on education, society, environment, and health.

Governance Achievements

• Adheres to the Bucharest Stock Exchange (BVB) Corporate Governance Code with only limited exceptions.
• Board of Directors held fourteen meetings during 2022.

Climate Goals & Targets

Environmental Challenges

• Energy crisis in Moldova.
• Inflationary pressures in Moldova (34.62%) and Romania (16.4%).
• Russian-Ukrainian military conflict impacting sales to Ukraine, Belarus, and Russia.

Mitigation Strategies

• Moldova Government successfully connected the country’s infrastructure to European markets.
• Group's sales to Ukraine, Belarus, and Russia dropped to 3% of total production (from 5.4% in 2021).
• The Group has a solid financial position to withstand challenges.

Supply Chain Management

Responsible Procurement

• Prioritizes suppliers offering energy-efficient solutions.

Climate-Related Risks & Opportunities

Physical Risks

• Late frosts, lack of sunshine, lack of rain, hailstorms

Reporting Standards

Frameworks Used: GRI, Accountability Standards

Certifications: ISO 9001:2015, ISO 22000:2018

Sustainable Products & Innovation

• Native Collection wine produced from grapes in conversion to organic agriculture.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Launched the irrigation system at Purcari Winery, securing the sustainable development for 300ha of vineyards
• Expanded the environmentally friendlier subsurface irrigation system for another 600ha in 2023.
• Solar Panels amounting 960kwh installed on the roof of the Purcari, Bostavan and Bardar wineries.
• 25 ha of vines in conversion (C3) towards ecological and biodynamic viticulture.

Social Achievements

• Launched Purcari Foundation in July 2022 to consolidate our efforts towards social projects.
• The Purcari Help Center opened on 24th of February 2022. 13,000 refugees aided, 2,600 refugees transported to a safer place, 3,540 refugees sheltered.
• Supporting CCF/HHC Moldova (a team of people working to give every child the opportunity to grow up in a loving family).
• Contributing to Hospice Angelus, a home palliative care service.
• Providing hot meal for tens of vulnerable people in our communities.
• Fully equipped 3 classrooms in the school of the Purcari village.
• General Sponsor of the Moldovan National Olympic Committee and main partner for volleyball club USMBostavan.

Governance Achievements

• Expanded the board to 7 members, composed of both women and men with diverse skills, experience, backgrounds, and perspectives, which represents a competitive advantage.
• Awarded Best Board of Directors in 2021 by the Romanian Investor Association.

Climate Goals & Targets

Environmental Challenges

• Challenging conditions to lower-tier brands
• Inflation
• Supply chain shortages
• Pressure on Net Income due to higher financing costs, higher depreciation from Capex executed in prior periods.
• COGS still includes a portion of more expensive wine stocks of 2020 and 2021 vintage.

Mitigation Strategies

• Price increases
• Implementing irrigation systems to secure yield and quality
• Investing in solar panels to reduce energy consumption
• Fulfilling required stocks from 3rd party purchases; favorable price environment to positively influence future margins.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015, ISO 22000:2005, ISO:9001:2015 HU 06/1763, ISO22000:2018, HU 11/6104 and ISO 22000:2018

Awards & Recognition

• Best Board of Directors in 2021 by the Romanian Investor Association

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Responsibility
• Climate Change Mitigation
• Climate Adaptation
• Energy Efficiency
• Renewable Energy
• Eco-friendly Practices
• Water Treatment
• Resource Consumption Optimization
• Ecological Viticulture

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities