Climate Change Data

Environmental Metrics

ESG Focus Areas

• Alcohol Responsibility
• Environmental Sustainability
• Our People
• Community Relations

Environmental Achievements

• Reduced steam usage and energy needed to cook agave by 14% at Herradura, resulting in yearly savings of 700 tons of carbon dioxide equivalent and 950,000 gallons of water.
• Five of 15 owned facilities achieved zero waste-to-landfill.
• 6.9% decrease in wastewater discharge per unit of product.
• 85% of waste generated by our facilities is diverted from landfill.

Social Achievements

• Launched SPIRIT (Showing Pride in Respecting Individual Tastes), an Employee Resource Group supporting non-drinkers, enhancing inclusivity.
• Increased fully paid maternity leave for U.S. salaried and non-union hourly employees to 12 weeks and extended paid leave for non-childbearing, adoptive, and foster parents to six weeks.
• Presented 4,332 monetary awards and delivered 872 e-cards through the That’s the Spirit! global performance recognition program.
• Over 700 employees volunteered approximately 15,000 hours.

Governance Achievements

• Published U.K. Modern Slavery Act Statement detailing controls to ensure modern slavery is not taking place.

Climate Goals & Targets

Environmental Challenges

• Significant production increases from new distillery and warehouse operations hindering the achievement of the 15% reduction in absolute GHG emissions target by 2023.
• Need to improve communication of feedback and addressing poor performance, allotting time for job-related learning and training, and improving collaboration and communication across different departments.

Mitigation Strategies

• Investing in renewables and exploring new investments to meet GHG emission reduction target.
• Launching a project in Fiscal 2018 called “Learning happens all the time and everywhere” to address employee learning and development needs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Guiding Principles on Human Rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Renewable energy investments, energy efficiency improvements

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: Null

Third-party Assurance: Stantec (GHG emissions)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 15 (Life on Land)

Alignment of corporate responsibility strategy with UN SDGs; focus on responsible alcohol consumption, water stewardship, renewable energy, and sustainable agriculture.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Alcohol Responsibility
• Environmental Sustainability
• Employee Relations and Diversity
• Community Involvement

Environmental Achievements

• Continued investment in water efficiency projects
• Investment in projects aimed at lowering greenhouse gas footprint such as fuel switching and energy efficiency

Social Achievements

• Supplier diversity increased to 6.1% of total procurement spend with minority- and women-owned businesses in FY19

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increase in total greenhouse gas emissions due to significant production increases and increased business travel
• Increase in absolute water use due to growth in production

Mitigation Strategies

• Continued investment in water efficiency projects
• Investment in projects aimed at lowering greenhouse gas footprint such as fuel switching and energy efficiency

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Goal to source 16% of all procurement from minority- and women-owned businesses by 2020

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: The Climate Registry

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

• Climate Action
• Water Stewardship
• Circular Economy
• Supply Chain
• Diversity, Equity and Inclusion
• Alcohol Responsibility

Environmental Achievements

• Achieved zero-waste-to-landfill goal across production facilities in 2020
• Wind power project offsetting >90% of U.S. electricity usage
• Partnership with TVA for solar energy at Jack Daniel's distillery

Social Achievements

• Launched "Pause" campaign promoting responsible drinking
• Developed new onboarding materials and responsible tasting guidelines for employees
• Committed $20 million to the Brown-Forman Foundation for community investment
• Received a perfect score on the Human Rights Equality Index for 11 consecutive years

Governance Achievements

• 10% of Executive Leadership Team's short-term incentive compensation linked to D&I progress

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global events and increased demand
• COVID-19 pandemic impacting on-premise and travel retail channels
• Higher input costs (wood and agave)
• European Union tariffs on American whiskey

Mitigation Strategies

• Risk mitigation strategies to address supply chain constraints
• Rapidly evolved execution of strategy to respond to changing market dynamics
• Investing in renewable energy sources (wind and solar)
• Developing multi-year mitigation plans to address water risks in key watersheds

Supply Chain Management

Responsible Procurement

• Partnering with suppliers to explore new opportunities to reduce waste

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts
• Increased taxes

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI, SASB

Awards & Recognition

• U.S. Environmental Protection Agency’s National Top 100 list of largest green power users
• Environment+Energy Leader (E+E) 100 list
• Human Rights Campaign, Corporate Equality Index, 100% Rating (11 consecutive years)
• Numerous Great Place to Work awards

Environmental Metrics

ESG Focus Areas

• Alcohol Responsibility
• Environmental Sustainability
• Employee Relations & Diversity
• Community Relations

Environmental Achievements

• Reduced Greenhouse Gas Emissions (details in report, but specific quantification missing)
• Reduced water use (details in report, but specific quantification missing)

Social Achievements

• Increased supplier diversity (14% to 16% in the U.S.)
• Decreased Total Recordable Injury Rate (TRIR)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Competition from new entrants and other competitive activities
• Route-to-consumer changes
• Changes in consumer preferences
• Production facility, aging warehouse, or supply chain disruption
• Higher costs of energy, water, raw materials, or labor
• Impact of health epidemics and pandemics
• Unfavorable global or regional economic conditions
• Product recalls or other product liability claims
• Negative publicity
• Failure to attract or retain key talent
• Risks associated with acquisitions
• Risks associated with being a U.S.-based company with a global business
• Failure to comply with anti-corruption laws
• Fluctuations in foreign currency exchange rates
• Changes in laws, regulatory measures, or governmental policies
• Decline in the social acceptability of beverage alcohol
• Counterfeiting and inadequate protection of intellectual property rights
• Significant legal disputes and proceedings
• Cyber breach or failure of information technology systems

Mitigation Strategies

• Investing in projects such as fuel switching and energy efficiency
• Water efficiency improvements at Jack Daniel Distillery and Casa Herradura operations
• Capital investments and continuous improvement to address specific injuries and illnesses in the production environment

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Water Management
• Energy Management
• Packaging Lifecycle Management
• Responsible Drinking & Marketing
• Environmental & Social Impacts of Ingredient Supply Chain
• Ingredient Sourcing

Environmental Achievements

• 88% of Brown-Forman’s electricity consumption is from renewable sources.
• Introduced a 50 ml PET bottle of Jack Daniel’s Tennessee Whiskey made with 15% post-consumer recycled (PCR) PET

Social Achievements

• One complaint made regarding marketing/labeling, but zero upheld by governing bodies.
• Piloted a human rights questionnaire with selected employees and implemented training globally.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Water-related risks in other parts of our value chain are not considered currently
• Weather, climate change, fires, diseases, and other agricultural uncertainties that affect the health, yield, quality, or price of raw materials.
• Extended droughts or water supply interruptions could affect production.

Mitigation Strategies

• Incorporated water-related risks into Enterprise Risk Management process.
• Use WRI Aqueduct and WWF Water Risk Filter tools to assess inherent risk at production sites.
• Collaborate across departments to identify and quantify risk, assign project teams to mitigate risks.
• Committed to 100% recyclable or reusable primary packaging by 2030; eliminating unnecessary materials; implementing circular packaging systems; and increasing recycled content by 2030.
• Launched a Climate Action Supplier Pilot Program and engaged with six key packaging suppliers to improve sustainability and reduce GHG emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Weather, climate change, fires, diseases

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 50 ml PET bottle of Jack Daniel’s Tennessee Whiskey made with 15% PCR PET

Awards & Recognition

• Not disclosed