Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Environmental Management
• Health and Safety
• Social Responsibility
• Employee Well-being

Environmental Achievements

• Reduced transportation costs, pollution, and energy consumption by optimizing logistics and proximity to customers.
• Recycled 450,000 m3 of water, 3.15 times more than consumed.
• Reduced hazardous waste production through improved data interpretation.
• Reduced carbon emissions (15,939 tons CO2e compared to 17,534 tons CO2e in the previous year).

Social Achievements

• Created new jobs in Jackson, Ohio, with Speyside Bourbon Cooperage.
• Implemented ergonomic improvements and safety measures across various subsidiaries.
• Decreased absenteeism rate (4.59% compared to 4.84% in the previous year).
• Maintained low staff turnover in France (8.71%).
• Provided 13,169 hours of employee training.

Governance Achievements

• Implemented enhanced procedures in US subsidiaries to ensure no illegal alien employment.
• Regularly visits subsidiaries to ensure respect for TFF Group values.
• Complies with regulations of various countries and the International Labour Organisation.

Climate Goals & Targets

Environmental Challenges

• Decline in the US market for wine barrels due to low harvest volumes.
• Cyclical decline in the Scotch whisky market due to inventory adjustments and lower production.
• High staff turnover in foreign subsidiaries (33.09%).
• Failure to meet French regulations for employing people with disabilities.

Mitigation Strategies

• Investment in bourbon market diversification.
• Ergonomic improvements and safety measures to reduce absenteeism.
• Focus on permanent contracts to reduce turnover.
• Use of ESATs (or equivalent) to meet disability employment obligations.

Supply Chain Management

Responsible Procurement

• Long-term investment policy
• Sourcing primarily from France, US, and Hungary
• PEFC certified oak (47.63%)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI model 3, ISO 26000

Certifications: PEFC (47.63% of oak purchased)

Environmental Metrics

ESG Focus Areas

• Health and safety of employees
• Social policy
• Reducing ecological footprint
• Business ethics

Environmental Achievements

• 75% of TFF’s French companies working with oak wood obtained PEFC certification.
• Increased rate of recycled barrels (4.37 barrels per barrel sold in wine and whisky division).

Social Achievements

• Zero fatal working accidents.
• Increased training hours per employee (74 hours compared to 51 in the previous year).
• Implemented a business ethics alert system.

Governance Achievements

• Implemented anti-corruption training for 180 employees.
• Established a two-tiered governance system with an Executive Board and a Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• Low-volume 2020 harvest due to fires in USA and Australia.
• Covid-19 pandemic impacting consumption and investment.
• Unfavorable exchange rates.
• Inflationary context impacting raw materials and freight.
• Ramping up of Bourbon division not yet reaching target profitability.

Mitigation Strategies

• Implemented measures to adapt operational aspects of production sites and sales offices.
• Continued to integrate and develop new business sites.
• Implemented hedging policy for foreign exchange risk.
• Continued to subscribe to medium-term loans.
• Diversification of activities to limit impacts of economic slowdown.

Supply Chain Management

Responsible Procurement

• Favoring the purchase of wood from sustainably managed forests (PEFC, FSC)

Climate-Related Risks & Opportunities

Physical Risks

• Lower harvests due to global warming

Reporting Standards

Frameworks Used: GRI 3

Certifications: PEFC, ISO 9001 (some subsidiaries), ISO 14001 (Hungarian subsidiary)

Third-party Assurance: ACA Nexia

Sustainable Products & Innovation

• OH>15® technological barrel

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Skills Development and Knowledge Transfer
• Business Ethics
• Environmental Footprint Reduction
• Sustainable Product Development
• Waste Reduction and Circular Economy
• Climate Change Mitigation and Adaptation
• Sustainable Forest Management
• Supplier Relationships
• Community Engagement

Environmental Achievements

• Maintained high waste recovery rate (98%),
• Reduced water consumption on a like-for-like basis
• Increased green electricity consumption in one US company to 97%
• 100% of Wine Division stave mills PEFC certified, 100% of Bourbon Division stave mills AHMI certified

Social Achievements

• Increased training hours by 20% to 64,908 hours
• Reduced workplace accidents for the third consecutive year
• Improved employee integration programs in France (94% of sites)
• Maintained high employee retention rate (95% permanent contracts)

Governance Achievements

• Implemented a business ethics whistleblower system
• Provided anti-corruption training to 180 at-risk staff
• Adhered to Middlenext anti-corruption code of conduct

Climate Goals & Targets

Environmental Challenges

• Small harvest in France due to frost,
• Unfavorable conditions in the US due to fires,
• Supply chain disruptions impacting whisky business,
• Lack of used barrels available from bourbon producers,
• Shortage of skilled labor in the US and Scotland,
• Inflationary environment,
• Difficulties sourcing logs in bourbon production regions,
• Lack of staff in bourbon stave-milling,
• COVID-19 pandemic impact on logistics and human resources,
• Potential consequences of global warming on wine harvests

Mitigation Strategies

• Adapted organization of work and team management,
• Continued investment strategy in bourbon production (additional stave mill and land acquired),
• Regularly raised sales prices to offset increased costs,
• Diversified raw material supplies (80% in-house production of wood needs),
• Implemented targeted ergonomic measures to improve working conditions,
• Developed a fire risk prevention action plan,
• Continued efforts to prevent exposure to wood dust,
• Implemented measures to reduce the carbon footprint (consolidated assessment planned for 2022)

Supply Chain Management

Responsible Procurement

• Favoring proximity with suppliers to minimize delays and promote local economy
• Ensuring sustainable sourcing of wood (PEFC/FSC)

Climate-Related Risks & Opportunities

Physical Risks

• Lower harvests due to increased temperatures and extreme weather events

Opportunities

• Developing products and services to respond to climate change (e.g., different barrel heating levels)

Reporting Standards

Frameworks Used: GRI 3

Certifications: PEFC (Wine Division stave mills), AHMI (Bourbon Division stave mills), ISO 9001 (several sites), ISO 14001 (Hungarian subsidiary), ISO 22000 (Darnajou Cooperage)

Third-party Assurance: ACA Nexia

Sustainable Products & Innovation

• Different barrel heating levels, different types of grain, different barrel sizes to respond to climate change

Awards & Recognition

• Radoux - EcoVadis Silver Medal

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Business Ethics
• Inclusion and Diversity
• Health and Safety

Environmental Achievements

• Increased the rate of recycled barrels per barrel sold (wine and whisky sectors: 3.02 barrels recycled for every barrel sold)
• Achieved a 97% waste recovery rate at the group level
• Reduced electricity consumption by 23.3% compared to the previous year
• Two stave mills recycle 100% of their used water

Social Achievements

• Launched the "Transform for a Fair Future" program promoting sustainable working models
• Increased the number of employees trained in the anti-corruption code of conduct to 100%
• Implemented various health and safety improvements across different sites (e.g., lifting platforms, ergonomic workstations)
• Supported various social initiatives (sports sponsorships, philanthropy)

Governance Achievements

• Implemented a Middlenext Anti-Corruption Code of Conduct
• Established a CSR committee with external expertise
• Regularly reviews the monitoring of the implementation of CSR measures

Climate Goals & Targets

Environmental Challenges

• Increase in occupational accidents, mainly in France due to recruitment and training of new employees
• Economic slowdown in some markets
• Integration challenges of acquisitions
• Information system failures
• Inflationary pressures (high energy costs, rising interest rates)
• Supply chain disruptions and shortage of used barrels (whisky market)
• Lack of visibility and economic uncertainty impacting customer investment decisions
• Potential additional taxation (€3 million estimated risk)

Mitigation Strategies

• Reinforced training protocol for new hires to improve accident prevention
• Careful management of production capacities and expenses to preserve profitability
• Close monitoring of economic and geopolitical situations to adapt operations
• Hedging policy to reduce exposure to interest and exchange rate fluctuations
• Adequate civil liability insurance
• Diversification strategy to limit potential impacts of climate change
• Energy savings plan
• Eco-grazing and beehive installations

Supply Chain Management

Responsible Procurement

• Promoting PEFC and AHMI certified wood

Climate-Related Risks & Opportunities

Physical Risks

• Lower harvests due to global warming

Reporting Standards

Frameworks Used: GRI 3

Certifications: ISO 9001 (Radoux and Arobois), ISO 14001 (Hungarian subsidiary), PEFC (100% of French wine division stave mills), AHMI (100% of American bourbon division stave mills), ISO 22000 (Tonnellerie Darnajou)

Third-party Assurance: ACA Nexia

Awards & Recognition

• EcoVadis Bronze Medal (Radoux cooperage)