Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Recent designation of Argentina as a highly inflationary economy, requiring remeasurement of Argentine subsidiaries' financial records from Argentine Peso (ARS) to USD.

Mitigation Strategies

• Seeking an extension to file the Form 10-Q under Rule 12b-25.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Implemented significant changes in response to the COVID-19 pandemic, including allowing all employees to work from home; offered employees a wide array of benefits such as life and health insurance, paid time off and retirement benefits, as well as emotional well-being services.

Governance Achievements

• Updated corporate governance policies effective upon the uplist of the Company’s common stock to Nasdaq; established the Audit Committee on April 15, 2015 and revised the charter as of March 25, 2021; adopted a Code of Business Conduct and Whistleblower Policy effective April 15, 2015 and amended on March 25, 2021.

Climate Goals & Targets

Environmental Challenges

• Business disruption and related risks resulting from the COVID-19 pandemic; economic and political instability in Argentina; war in Ukraine; high inflation in Argentina; changes in foreign exchange rates; Argentina’s limited ability to obtain financing from international markets; uncertainty regarding the stability of the Argentine banking system; government measures to pre-empt or respond to social unrest; risks related to compliance with anti-corruption and anti-bribery laws and regulations; uncertainties in the real estate market in Argentina; limitations on the ability of foreign persons to own Argentinian real property; extensive domestic and foreign regulation; lack of liquidity in the underlying real estate; limited public information about real estate in Argentina; delays in construction projects due to the COVID-19 pandemic; losses not covered by insurance; high competition in the boutique hotel market; historically higher overhead costs than gross margin for the hotel; risks affecting the hotel industry; dependence on consumer demand for leisure and entertainment; high competition in the tourism industry; unpredictability in costs and expenses for development projects; competition within the wine industry; changes in import and export rules and taxes; adverse effects of natural disasters; climate change and water scarcity; various diseases, pests, and weather conditions; limited operating history and no revenue for Gaucho Group, Inc.; high competition in the online luxury fashion business; risks associated with importing products; inability to protect intellectual property rights; cybersecurity risks; difficulty predicting consumer trends; early stages of advertising campaign; labor laws and regulations; dependence on suppliers; risks of being an emerging growth company; substantial insider control; insufficient revenues to pay operating expenses; potential for costly litigation; dependence on additional financing; high level of debt; involvement of CEO and CFO in outside businesses; indemnification agreements for officers and directors; choice of forum provision in bylaws; insufficient financial controls and procedures; risk of delisting from Nasdaq; potential for future dilution; potential for needing additional funding; lack of public market for warrants.

Mitigation Strategies

• Implemented significant cost reduction measures including negotiating an early termination of the New York office lease, renegotiating with vendors, and implementing salary reductions; obtained a loan from the Paycheck Protection Program (PPP Loan); reviewed labor needs to run the administrative side of the Company in Miami; reopened Algodon Mansion, winery, golf and tennis facilities with COVID-19 measures implemented; pursued relationships with new vendors; expedited the build and launch of e-commerce platforms for wine sales; implemented a complete beautification renovation and quality upgrades for Algodon Wine Estates; engaged the architectural planning and design firm, EDSA to enhance and further develop the existing masterplan of Algodon Wine Estates; implemented revenue enhancement initiatives including expanding marketing, investment in additional winery capacity and developing new real estate development revenue sources; implemented cost reduction initiatives including investment in equipment that will decrease reliance on subcontractors, plus outsourcing and restructuring of certain functions; reduced operational expenses by approximately $800,000 per year; developed a compliance program to manage the risks of doing business in light of anti-corruption laws and regulations; holds key man life insurance for Mr. Mathis; maintains insurance coverage against liability to third parties and property damage; implemented a more robust and targeted marketing plan for Gaucho Group, Inc.; plans to launch popup shops in major cities.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, natural disasters

Transition Risks

• Regulatory changes, market shifts to address climate change

Awards & Recognition

• Algodon Mansion inducted to TripAdvisor’s Hall of Fame (2014-2019); Algodon Wine Estates inducted to TripAdvisor’s Hall of Fame (2014-2019); Chez Gaston Restaurant recognized as a 2021 Travelers’ Choice award winner