SUSTAINABILITY REPORT 2017 EXECUTIVE …SUSTAINABILITY REPORT 2017 EXECUTIVE SUMMARY RECYCLED Made from recycled material Viña Concha y Toro S.A. RUT: 90.227.000-0 Head Office: Avda

SUSTAINABILITY REPORT 2017

EXECUTIVE SUMMARY

100% Renewable energy

100% Responsible with the environment

SUSTAINABILITY REPORT 2017

EXECUTIVE SUMMARY

RECYCLEDMade from

recycled material

Viña Concha y Toro S.A.

RUT: 90.227.000-0Head Office: Avda. Nueva Tajamar 481, Torre Norte, piso N°15, Las Condes, Santiago, ChileTelephone: (56-2) 2476 5000Fax: (56-2) 22036733P.O. Box: 213, Correo Central, SantiagoWebsite: www.conchaytoro.com

For further information or suggestions on how to improve the next report, please contact:

Valentina Lira M.Sustainability [email protected]

Dear all:

On behalf of Viña Concha y Toro, I am pleased to present our sixth Sustainability Report, which ac-counts for the company’s performance on social, environmental and governance aspects. This doc-ument, prepared according to the GRI standards, incorporates for the first time the company’s three productive origins: Chile, Argentina and the United States.

During the year we reaffirmed our commitment to the implementation of renewable energies, and in this line, Fetzer Vineyards has become the first wine company in California to operate entirely on clean energy. In Chile, recognizing the potential of our ter-ritory, we signed agreements for the construction of 10 photovoltaic plants in several of the company’s estates.

In terms of local development, we renewed the Pro-ductive Alliances program with INDAP, which seeks to advise small grape suppliers and provide them with better competitiveness tools within the indus-try. Viña Concha y Toro’s Research and Innovation Center (CII) continues generating and transferring applied research that enhances technological de-velopment.

The relationship with our employees has always been of upmost importance, so we have focused on career development and talent management, improving employees’ training and permanently securing their health and safety.

We continued strengthening our relationship with our customers, and we underwent 24 ethical audits that allowed us to provide objective guarantees on social and labor requirements at all stages of the production process. In this same line, we also re-quested external service contractors to be audited on compliance with the Corporate Ethics Standard.

In terms of responsible marketing, the Enjoy Wine, Take Responsibility campaign was implemented, showing our commitment to promote moderate alcohol consumption.

The progress made in sustainability has been wide-ly recognized during 2017. For example, for third consecutive year we were selected to be member of the Dow Jones Sustainability Index Chile, and we also we achieved the carbon footprint certifi-cation from Carbon Trust, and Viña Cono Sur ob-tained the Gold seal of energy efficiency. In matters of corporate governance, Eduardo Guilisasti was elected “General Manager of a Leading Company in Sustainability” by the organization ALAS20. These recognitions motivate us to continue on this path, understanding sustainability as a key strategic el-ement of our management.

I invite you to read this report, hoping that you will find information of your interest about our vision of sustainability, and learn more about how we sup-port the fulfillment of the Sustainable Development Goals of the United Nations and the Global Com-pact Principles.

Yours sincerely,

Alfonso Larraín Santa María Chairman of Viña Concha y Toro

Letter from the Chairman

Additionally, the cover used curious matter, a innovative eco-friendly paper made of potato skin.

This publication, using 100% recycled paper instead of virgin fiber paper, has saved:

4.353 L OF WATER

242 kgOF WOOD

256 kWhOF ENERGY

149 kgOF WASTE

22 kg

The size of this publication allows an optimum use of the sheet of paper, reducing waste from the printing process.

To determine the relevant issues covered by this report, the company conducted an exhaustive ma-teriality analysis through an internal and external evaluation. The first one considered the update of the company’s Sustainability Strategy carried out by the top executives, as well as a prioritization of con-tents done at a workshop that brought together 31 employees in charge of managing the main topics of each strategic pillar; interviews with subsidiaries’ representatives, and a review of internal documents.

MATERIALITY MATRIX

The external evaluation was based on an online sur-vey, answered by 106 people, including employees, suppliers and other stakeholders, a review of the sustainability context in the industry, and a bench-mark of good reporting practices.

About this Report

6th Sustainability Report on the

company’s Economic, Environmental and

Social performance.

1ST REPORT that includes the company’s three

productive origins (Chile, Argentina and the United States).

REPORT VERIFIED

by an independent third party.

GRIThe report has been

prepared in accordance with the new GRI

reporting standard, in its comprehensive option,

and responding to the Communication of Progress (COP) on the integration of the principles of the

Global Compact.

Stakeholders

- Agricultural supplies

- Grapes

- Winemaking supplies

- Packaging

- External Services

- Transport and Distribution

1. SUPPLIERS

- Neighborhood

associations near

Concha y Toro’s

facilities

- Local authorities where

Concha y Toro has

academic institutions

2. COMMUNITY

- Senior executive positions

- Junior executive positions

- Technical and/or

administrative positions

- Temporary employees

- Trade unions

3. EMPLOYEES

- Educational association

- Trade Associations Wines

of Chile

- Pro sustainability

organizations

- Competitors

4. CIVI

L SOC

IETY

5. GOVERNMENT AND AUTHORITIES

- Government

- Regulatory authorities

- International organizations

- Government agencies

6. CLIENTS

- Retail

- International distributors

- National distributors

7. SHAREHOLDERS AND INVESTORS

- Financial rating

agencies

- Investment Fund

Administrators

- Investment banks

8. ME

DIA

- International media

- Local media

In 2017, Viña Concha y Toro underwent a process to update and prioritize its stakeholders, with the purpose of evaluating, proposing and deepening value-generating actions with each of the stakeholders.

Consolidated

sales

$643,785 million

BSCI

24 ethical audits

under the BSCI

standard in wine

cellars, plants and

vineyards

Viña Concha y Toro

Top #10 Beverages

Category Dow Jones

SustainabilityTM

Index

Almaviva

100 points

Top 100 Wine of

2017 James Suckling

Bodega Trivento N°1

winery in Europe

Global Data

Viña Palo Alto

First place in the

“Great sustainable

launch of the year”

category Green

Awards 2017

The Green Business

Viña Cono Sur

Energy Efficiency

Seal

Gold Category

Ministry of Energy

Investment

in innovation

M$2,512,877

Milestones 2017

Fetzer Vineyards

Momentum For Change

United Nations

Secretariat for

Climate Change

Fetzer Vineyards

First “Zero Waste

to Landfill” wine

company in the

world

Viña Cono Sur

Chilean Producer

of the Year

Wine & Spirits

Competition

Fetzer Vineyards

First winery in

California to

operate 100% with

renewable energy

3,169 employees

worldwide

305 thousand tCO2e

carbon footprint

01 02 0403VINEYARDSGROWING AND CARE

The production cycle starts with the beginning of the agricultural year on June 1. The care of the vineyards isessential for thepreservation of natural resources.

55 vineyards.9,722 hectares planted.

9 vineyards.1,140 hectares planted.

14 vineyards.462 hectares planted.

• Drip irrigation for an efficient use of water.

• Phytosanitary management and responsible ferti-lization, keeping the proportions between water and nutrients, to avoid disturbing water bodies and surrounding fields.

• The organic re-mains of the vines are reused in the composting of fields.

BOTTLING AND PACKAGING

Safe packaging of wine in the different formats offered by the company.

4 plants.240.2 mill. lt. bottled.

1 plant.21.3 mill. lt. bottled.

1 plant.19.4 mill. lt. bottled.

• Certification un-der the BRC and IFS standards.

• Energy efficiency in plants.

• Use of certified supplies.

• 100% industrial waste is recycled or reused.

HARVEST

The process of harvesting and grinding the grapes begins at the end of March. After the harvest, the grapesare transferred to the wells in the winemaking cellars.

107 (mill kilos) own grapes.194 (mill kilos) own grapes.

15.3 (mill kilos) own grapes.11.5 (mill kilos) purchased grapes.

3,5 (mill kilos) own grapes.19 (mill kilos) purchased grapes.

• Provide safety and good work-ing conditions to seasonal workers.

• Annual training for workers involved in the harvest process.

• Monitoring and coordination of the grape harvest process with grape suppliers.

• Planning of own and external fields to opti-mize the use of machinery and energy.

WINEMAKING

Controlled fermentation ofgrapes to obtain an optimal oenological result.

15 winemaking cellars.226.4 mill. lt.



• Incorporation of tangential modules to filter wine without generating waste.

• Organic waste is recycled to make tartaric acid and as a compost for reuse.

• Sanitization of tanks to prevent health and safe-ty incidents.

DISTRIBUTION

Distribution to logisticscenters or export to finallyreach the consumer's glass.

Concha y Toro Holding's

products aredistributed in 140

countries

• Reduction of the carbon footprint with the use of light bottles.

• Eco-labeling (Sunrise).

• Information on responsible drinking.

05

FETZER

TRIVENTO

OPERATIONS

IN CHILE

SUSTAINABILITY ASPECT

SUSTAINABILITY FROM THE VINEYARD TO THE GLASS Holding Concha y Toro

ProductionViña Concha y Toro has set the objective to maintain its leadership in the wine industry by being in harmony with the sustainability of its operations.

Concha y Toro Holding aims to continue being one of the leading wine companies worldwide, which is why it has integrated the principles of the Global Compact and, more recently, the United Nations’ Sustainable Development Goals (SDGs) into its internal activities and the pillars of Viña Concha y Toro’s Sustainability Strategy. This, with the purpose of establishing a direct relationship between what the United Nations is trying to achieve and those actions that the company is currently developing and carrying out, aiming to contribute to the realization of the SDGs by 2030.

Viña Concha y Toro's Contribution to the Sustainable Development Goals (SDG)

The principles established by the Global Compact and the goals developed by the UN for each SDG were put together for this specific purpose, with the activities recently elaborated and the sustainability strategy´s own objectives, defined according to the organization and its impact. Focus is being placed on establishing a direct relationship and therefore being able to maximize the actions that are already taking place, and identifying others, where the organization could produce meaningful results.

Concha y Toro Holding aims to continue being one of the leading wine companies worldwide, which is why it has integrated the principles of the Global Compact and, more recently, the United Nations’ Sustainable Development Goals (SDGs) into its internal activities and the pillars of Viña Concha y Toro’s Sustainability Strategy. This, with the purpose of establishing a direct relationship between what the United Nations is trying to achieve and those actions that the company is currently developing and carrying out, aiming to contribute to the realization of the SDGs by 2030.

Viña Concha y Toro's Contribution to the Sustainable Development Goals (SDG)

Customers

Supply Chain

Products

COMMITMENT

• Reduce by 15% emissions per bottle of wine produced and trans-ported by land

• Ensure 100% of key customers’ compliance of the company's Corporate Ethics Standard

PROGRESS 2017

• In 2017, it was 1.07 Kg of CO2 per 750cc bottle, which means a decrease of 5.3% compared to 2016

• Ethics and sustainability self-evaluation answered by 25 customers

COMMITMENT

• Have 100% of key suppliers in full compliance with the company's ethical standards

• Minimize the environmental impact of supplies at each stage of their life cycle, by developing innovative supplies

• Reduce key suppliers’ GHG emissions by 15% per bottle

PROGRESS 2017

• Ongoing dissemination and promotion of the Corporate Ethics Stand-ard, including clauses on compliance with the Code of Ethics and Conduct in contracts with suppliers and distributors

• The company has encouraged the use of light bottles. Currently 97% of bottles used by the company are Ecoglass, which weight less and whose production has a lower environmental impact

• 11 suppliers delivered their carbon footprint in 2017, none of them with variations greater than 15%

COMMITMENT

• Raise sustainability attributes for 100% of the Concha y Toro brands• Promote, create and strengthen a healthy relationship with wine con-

sumption, based on a corporate program of Responsible Drinking• Extend Concha y Toro’s participation in other product categories

PROGRESS 2017

• Sustainability attributes were built for 100% of Concha y Toro products• The “Enjoy Wine, Take Responsibility” (“Disfruta el vino, toma

con responsabilidad”) campaign was launched, establishing Viña Concha y Toro’s principles of moderate drinking through informative talks on the company’s different web platforms to more than 900 employees and external collaborators.

• Ongoing work with the Drinkaware Foundation• The Drug Use and Alcohol Abuse Prevention Program for employees

continued• New Coolers and Sangría products were launched, belonging to the

Flavored base wines category

Environment

People

Society

COMMITMENT

• Reduce by 10% the consumption of water per glass of wine produced• Eliminate waste to landfill• Reduce total greenhouse gas emissions in scopes 1 and 2 by 30%

PROGRESS 2017

• Reduction of 12% of the total water footprint • Only a 4% of waste disposed to landfill• In 2017, emissions of scope 1 and 2 were reduced by 6%

COMMITMENT

• Strengthen employees’ different competencies, increasing the hours of training

• Improve employees’ level of commitment

PROGRESS 2017

• Increased by 3.3% in 2017, resulting in 31 hours of training per capita • The level of commitment perceived by employees in the annual sur-

vey increased by 3% compared to 2016. Work was done to improve internal communication and recognition through the leadership program for different job categories

COMMITMENT

• Improve communities’ quality of life through investment in infra-structure and social programs

• Increase the transfer of R&D knowledge to grape growers and the industry in general

• Improve grape growers’ business and property management skills

PROGRESS 2017

• Viña Palo Alto's Enjoy Wine, Go Solar Program provided the Santa Laura de Lo Figueroa School with 16 photovoltaic panels that gen-erate 8 MWh per year to help cover their energy consumption

• Grape growers were supported and 12 projects were submitted to IN-DAP's Investment Development Program (PDI), and 6 of them approved.

• 5 grape growers built deep wells and two of them implemented photovoltaic irrigation projects

• The number of grape growers participating in the Productive Alli-ances Program increased to 29

Objetives 2020

Sustainability Strategy 2016-20Each of the company’s departments is responsible for managing their activities in a manner that is responsible with the environment and the surrounding communities, complying with the governance values and principles that drive the company, working to meet the goals of each of the six pillars established in the sustainability strategy:

Offer excellent Products that provide the best experience for

our consumers.

Be a partner to our

Suppliers.

Create partnerships with our

Customers.

Have highly committed

Employees.

Create shared value for

Society.

Be a benchmark for the industry in

Environmentalpractices.

BIODIVERSITY • In Chile, more than 3,200 hectares of native forest are under

conservation plans• Fetzer Vineyards came in second place in the The Green Busi-

ness Awards for its contribution to the protection and conserva-tion of biodiversity

CARBON FOOTPRINTMEASURED FOR 10 CONSECUTIVE YEARS• Concha y Toro was certified by CarbonTrust®, which will allow in the short term to have “eco-labels”,

improving the information available to consumers globally• Viña Cono Sur is the first wine company to obtain the status of Carbon Neutral Delivery by neutraliz-

ing its CO2 emissions produced in maritime transport• Fetzer Vineyards is the first company certified Carbon Neutral in California

WASTE• Concha y Toro recycles or

reuses 96% of its waste • Bodega Trivento reuses or

recycles 86% of its waste • Fetzer reuses or recycles 97%

of its waste

In terms of ILW, operations in Chile have 5 wastewater treatment plants, including a Wetland biological system in the Limarí winery. Fetzer Vineyards has a BIDA® BioFilter system, which uses biological organ-isms such as worms and microbes to treat agro-industrial waters.

In Chile, greenhouse gas emissions (GHG)

decreased by

3.5%

EMISSIONS FOR SCOPE BY VIÑA CONO SUR AND VIÑA CONCHA Y TORO

79%

14%

7%Scope 2

Scope 1

Scope 3

Total GHG emissions

305 thousand tCO2e

OPERATIONS IN CHILE

Tones Type of waste Disposal

54,000 Organic 100% recycled or reused

2,600 Packaging 100% recycling

2,904 Household 100% landfill

Environment

01Viña Concha y Toro is committed to being a benchmark for the industry in environmental practices, adopting a culture of sustainability in the development of its products.

WATER• The water footprint de-

creased 17% compared to the previous year

• 100% of the vineyards have drip irrigation system

• 76 natural water sources, none affected by the company’s water use

ENERGY• Each liter of wine produced in Chile consumes 0.43 kWh• Concha y Toro reduced its electricity consumption by 11% and fuel consumption by 8%• Fetzer reduced by 4% its electrical consumption and by 11% the use of natural gas• Viña Cono Sur has the ISO 50.001 certification and obtained the Gold seal of ener-

gy efficiency granted by the Ministry of Energy

COMMITMENT TO RENEWABLE ENERGIES• In operations in Chile, the company is working on the implementation of 10

photovoltaic plants• Fetzer Vineyards has a 100% NCRE matrix

LITERS OF WATER USED TO PRODUCE A 125 ML WINE GLASSCONCHA Y TORO

20172016

INDUSTRYAVERAGE

6477120

SUSTAINABLE PACKAGING • Currently 97% of the bottles used by

Viña Concha y Toro are light bottles made of “ecoglass”

SCENARIO WITH AND WITHOUT LIGHT BOTTLE IN THE OPERATIONS IN CHILE

Without light bottle (Tons of glass)

Current (Tons of glass)

2015

2016

2017

87,432

100,080

107,083

122,159

101,295

115,743

-12,648Difference

-15,076Difference

-14,449Difference

TYPE OF SUPPLY CERTIFICATION

Boxes ISO 9001, ISO 14001, FSC

Capsules ISO 9001; ISO 14001;

OHSAS 18001; BRC

Corks ISO 9001; ISO 22000: FSC

Labels IFS PAC secure; ISO

9001; FSC

Bottles ISO 9001,; ISO 22000;

ISO 50001

Caps ISO 9001; ISO 22000; BRC

Our strategic partners have certifications that guarantee their commitment to quality, care for the environment and risk prevention.

11 suppliers measured and delivered their carbon footprint to Concha y Toro, none with a variation of more

than 15%

The company has a policy that prohibits the use of any enological and/or agricultural supply that contains Genetically Modified Organisms (GMOs), whether it is leased or directly purchased.

Supply Chain

02Viña Concha y Toro aims to build a relationship of trust and transparency with its supply chain, seeking to achieve an efficient coordination between suppliers of one or more products in the right amounts, the right places and at the right time.

• In Chile, 93% of suppliers are local, distributed throughout the country• In Bodega Trivento, 88% of suppliers come from Mendoza, Argentina• In Fetzer Vineyards, 85% of the suppliers come from California, USA.

RESPONSIBLE SUPPLYSUSTAINABLE PRACTICES TRANSFER

SUPPLIERS ACCORDING TO INTERNAL CATEGORIES

2017

% ASSESSED

TYPE OF ASSESSMENT

Concha y Toro 34%

Sustainability Code + Ethics

and Sustainability Self-

Assessment + BSCI Code Audit

Viña Cono Sur 9% Sustainability Code

Packaging Supplies

(Operations in Chile)95%

Ethics and Sustainability

Self-Assessment

External Services

(Operations in Chile)100%

Ethics and Sustainability

Self-Assessment

INNOVATIONViña Concha y Toro’s Research and Innovation Center of develops applied technology, favoring knowledge transfer through 5 strategic programs, one of which is the design of new products:

• In the creation of Diablo, chemical-sensorial studies of benchmarks were developed

• The Flavored Base Wines line launched new versions: Berries, Pineapple-Passion Fruit and Clos de Pirque Sangria

• Jacked, a new brand of flavored wines devel-oped thanks to an thorough research process

RESPONSIBLE MARKETINGViña Concha y Toro, seeks to promote responsible drinking through three mechanisms:

• Drinkware, an international organization where the company is one of the founding partners, which provides information and tools to promote moderate drinking

• APROCOR, a trade association of spirits companies for responsible consumption that brings together the main representatives, im-porters and producers of alcoholic beverages in the country

• Enjoy wine, drink wise, the internal campaign where the company shows its commitment to moderate alcohol consumption

Thanks to many initiatives, such as the "Enjoy Wine, Go Solar" project, Viña Palo Alto was awarded the Special Commendation by the Drink Business mag-azine, for the sustainable campaign of the year.

Sunrise, one of the brands of Concha y Toro, has as a differentiating attribute the neutralization of its GHG emissions, which during 2017 were just over 4,600 tCO2e.

COMPANY GMO-FREE ORGANIC* BIODYNAMIC* GLUTEN FREE

SUSTAINABLE

Concha y Toro x x x

Viña Cono Sur x x x x

Quinta Maipo x x x x

Fetzer

Vineyardsx x x x x

Bodega

Triventox x

SUSTAINABLE PRODUCTS

(*) Only some products are certified organic.

Product

03Through a broad portfolio of products of excellent quality, the company seeks to satisfy its current consumers while effectively conveying sustainability attributes consistent with the identity of each of the brands.

• Casillero del Diablo, Concha y Toro’s main brand, introduces 2 new lines: “Red Blend y Diablo”.

• James Suckling awarded 98 points to Don Melchor, the company’s icon Cabernet Sauvignon

• Fetzer Vineyards’ 1,000 Stories is named an Impact Hot Prospect brand for its considerable growth

QUALITYCERTIFICATIONS

For Viña Concha y Toro, caring for the environment while ensuring the quality and excellence of its wines is a crucial aspect of its operations, and so it has several recognized certifications.

Viña Cono Sur has the Organic credentials of Kiwa BCS and the Sustainability Code. Also, in 2017 it was certified on the ISO 9001: 2015 standard for Quality Management systems.

Fetzer is certified by the GSFI Global Food Safety Initiative as well as the CCOF Organic Certification and the Demeter certification for Biodynamic prod-ucts and B Corp.

CUSTOMER SATISFACTIONIn order to identify opportunities for improvement and enhance the positive aspects of its manage-ment, every year customers are invited to partic-ipate on an online survey to identify their level of satisfaction and their degree of loyalty towards the company. In this context, 65% of customers con-sider Viña Concha y Toro cares about sustainability.

AFTER-SALES MANAGEMENT The management of suggestions, requests or complaints showed it was 7.8% less than the previous period.

EFFICIENCY IN CO2 EMISSIONSFor second year in a row, the Multimodal program, which has the objective of reducing GHG emissions by transporting products via rail to ports, transport-ed 510 tons during 2017, which meant a mitigation of 4.6 tCO2.

201720162015

58%

60%

65%

PERCEPTION OF SUSTAINABILITY

PROMOTION OF SUSTAINABILITY• New contracts with clients binds them to comply with the company’s Code of Ethics and Conduct • 25 clients responded a self-assessment on ethical, social and environmental aspects

GHG emissions due to land transport have been reduced by

12%

2017

2016

2015

Supply Chain Management

Logistics Management

Customer Service Management

11

3229

12

44

3 4 43

Customers

04Viña Concha y Toro seeks to build long-lasting and trustworthy relationships with its customers through efficiency, quality and transparency.

CLIENT AUDITSAs part of the continuous process of deepening the relationships with with customers, the company underwent a series of audits to guarantee the company’s performance in ethical, environmental and quality requirements.

2 2 1

1

1

1

4

6

3

1

20162015

Walmart

Tesco

TescoTesco

BSCI

BSCI Morrinsons

SmetaWoolworth

Walmart

2017

CLIENT AUDITS SUMMARY

TEMPORARY WORKERS

QUALITY OF LIFEThe Human Resources management builds a direct relationship with each and every one of the com-pany’s employees through a series of benefits and professional activities, and also develops several programs and activities that aim at the quality of life of the people that make up the company.

RISK PREVENTIONIt is a transversal aspect and a core element for the company, so during 2017 100% of the employees that work in the harvest process were trained.

APERRA CON TUS IDEAS PROGRAMIts purpose is to develop and guide employees’ initiatives on efficiency and process improve-ment. During 2017, twelve projects were imple-mented, three of which were based on the use of recycled materials.

100%of temporary workers

were trained

Concha y Toro19% reduction in accidents

2% reduction of average working days lost

Viña Cono Sur62% reduction in accidents

81% reduction of average working days lost

Fetzer

Vineyards

15% Incidence Index

4.3 Lost time Index

Bodega Trivento6.1 accident rate

185 Average working days lost

96% (average) of employees

are covered by the different joint committees of the operations in Chile and

the USA.

AVERAGE TEMPORARY WORKERS 2017

1,283

22

9Fetzer

Trivento

Operationsin Chile

Total

1,314

People

05Viña Concha y Toro seeks to create long-term relations with all those who are part of the company, through professional development and by fostering employees’ physical, mental and social well-being.

• 97% of the personnel has a permanent contract• 73% of the total personnel correspond to men and 27% to women• 32% of the total personnel are in operative positions• 62% of the total personnel is between 30 and 50 years of age

3,169

PersonnelPermanent contract: 3,064Fixed term contract: 105

Average Temporary Workers

Contractors of Viña Concha y Toro and Bodega

Trivento

Job positions filled by women

1,314 1,115 838

COMMUNITY AND SOCIAL ENVIRONMENT• Each of the facilities (farms, winemaking cellar or plant) has a delegate for community relations, and

during 2017 57% of the requests done by the community were approved• Sports is another of way in which the company promotes local development, supporting 30 children

who are part of the Ferro Unido Corinto football school in the Maule region• In the San Vicente de Tagua Tagua, O'Higgins Region, the company lent a sector of the Idahue

estate to the sports club of the same name• Viña Palo Alto launched the Enjoy Wine, Go Solar campaign, with the technical support of Tesla Energy, to

install 16 photovoltaic panels that allow the generation of 8MWh per year, to cover an important percent-age of the energy requirements of the Santa Laura de Lo Figueroa school, in Pencahue

• Viña Cono Sur has action plans to notify the communities surrounding the Santa Elisa estate, in Chimbarongo, about possible frosts

• Fetzer Vineyards collaborates with the North Coast Opportunities project, which aims to improve the nutrition of vulnerable population in the counties of Mendocino and Lake through the construction of community gardens

EDUCATIONViña Concha y Toro recognizes the value of educa-tion as a means to people’s development and social mobility.

• During 2017, the Cultívate (Cultivate Yourself) program began, which generates formal and long-term agreements with educational institutions in the districts where the company operates

• Same as in previous years, the company granted scholarships to 25 young people with outstanding performance through the Fundación Juan Pablo II and the Las Garzas Agricultural School

TRAINING AND EXTENSION

2016

2017

608395

5511,157

total

external

externaltotal

Since opening in 2014, the Center for Research and Inno-vation (CII) has promoted ap-plied research, technological development and knowledge transfer, being a space open to the winery’s productive and social environment.

EXTERNAL VISITORS TO THE CII

Society

06Concha y Toro Holding understands that its commercial activity also creates value for the social and productive environment in which it operates. Therefore, interacting directly with producers, promoting academic extension, and relating with the community is of great relevance to the company.

PRODUCTIVE ALLIANCES FETZER WITH SMALL GRAPE GROWERS FETZER ALLIANCES

2015

2016

2017

19

29

29

Focus: Strengthen the Productive Alliances

Focus: Enhance agricultural management

Focus: Create commercial links

Sola Bee Farms program to receive the population of bees in Bonterra’s biodynamic fields, allowing bees to feed on healthy flora.

Kaos Sheep Outfit program that allows about 2,000 sheep to graze on the fields of the Californian company, which helps to fertilize the soil.

ENVIRONMENT

SUSTAINABILITY STRATEGY VIÑA CONCHA Y TORO

2030 AGENDA

Goal 2020 Progress 2017 SDG Specific Objective Goal 2030

WATER

-10% In water

footprint per

glass of wine

-9% Variation

6.4

Ensure

sustainability

in the

extraction of

water

Increase water

efficiency

ENERGY 100%

Renewable

energy

62% Renewable

energy

7.2Promote the

NCRE ratio

Increase NCRE

proportion

BIODIVERSITY

100% Forests with

implemented

plans

100% Plans

designed

15.1Ensure the

conservation

of ecosystems

Increase

or maintain

conservation

area

WASTE 0

Waste to

landfill

4% Landfill

6.3Improve water

quality

Improve

industrial

waste water

ratio/product

12.5Reduce the

generation

of waste

Increase

recycling

rate/product

CLIMATE CHANGE

30% Reduction in

scope 1 and 2

6% Reduction

13.2

Incorporate

measures

relating to

climate change

Increase

climate change

actions/risks

As a global company, Viña Concha y Toro communicates the progress made towards the SDGs (Sustainable Development Goals) of the United Nations through this report, produced according to the GRI standard.

PRO

GRESS TOWARDS SDG

s

• 2 0 1 7 •

PRODUCT


2030 AGENDA


INNOVATION

3New product

categories

1 Category

9.5Increase

research in

the industry

Increase

research/

revenue

QUALITY

0%Retentions

1.6% Retentions

8.2

Improve

productivity

through

innovation

Increase

sustainable

growth rate

SUSTAINABLE

ATTRIBUTES

100% Brands with

identified

attributes

and

implemented

campaigns

100% Attributes

identified

12.8

Promote

access to

information on

sustainability

Improve

dissemination

/communication

campaigns

RESPONSIBLE

DRINKING 1

Campaign

implemented

in 4 phases

25% Phase 1,

development

of internal

campaign

3.5

Strengthen the

prevention

of harmful

alcohol

consumption

Strengthen

campaigns/

product

Progress Towards SDG

SUPPLY CHAIN


2030 AGENDA


RESPONSIBLE

SUPPLY CHAIN

100% Key suppliers

meeting the

Corporate

Ethics

Standard

58% In stage 1 of

assessment

8.8

Protect labor

rights and

safe work

environment

100%

compliance

with ILO

CARBON FOOTPRINT

15% Footprint

reduction per

bottle

12% Reduction

9.4

Promote the

adoption

of clean

technologies

Decrease

tCO2/product

PACKAGING

100% Of premium

portfolio

using "Eco2"

bottles

6% Of the premium

portfolio

using "Eco2"

bottles

12.2Efficient use

of natural

resources

Decrease raw

material/

product


PEOPLE


2030 AGENDA


CAREER DEVELOPMENT

100% Departments

with career

plans

38% Employees

8.3Promote

training

policies

Promote

training

policies and

plans

ENGAGEMENT

+70% Level of

engagement

Action plans

communicated to

100% management8.2

Improve

productivity

through

innovation

Increase

sustainable

growth rate

KNOWLEDGE CENTER

45 Man-hours of

training per

person per

year

31 Man-hours of

training per

person per year

in Chile

4.3Ensure access

to formal

education

Increase % of

trainingETHICAL MANAGEMENT

100% Certified

under SA 8000

standard

30% Sites diagnosed

and with

external

verification

8.8

Protect labor

rights and

safe work

environment

100%

compliance

with ILO


CUSTOMERS


2030 AGENDA


EFFICIENCY IN

LOGISTICS COSTS

$22/lt

$ 19.8/lt

8.2

Improve

productivity

through

innovation

Increase

sustainable

growth rate

EFFICIENCY OF

CO² EMISSIONS

15% Reduction in

emissions per

bottle

12% Reduction

9.4

Promote the

adoption

of clean

technologies

Decrease

tCO2e/product

INTEGRAL CUSTOMERS 100%

Of customers

complying

with the

Corporate

Ethical

Standard

15% Stage 1 self-

assessment

8.8

Protect

labor rights

and safe

environment

100%

compliance

with ILO


SOCIETY

SUSTAINABILITY STRATEGYVIÑA CONCHA Y TORO

2030 AGENDA


PRODUCTIVE

ALLIANCES

100% Grape growers

with an

increase in

productivity

50% Increase in

productivity

8.2

Improve

productivity

through

innovation

Increase

sustainable

growth rate

EXTENSION FOR

GRAPE GROWERS 100%

Relevant

stakeholders

visiting the

center

100% Reach

8.3Promote

training

policies

Promote training

policies and

plans

COMMUNITIES

4 Social

programs

1 Program (Viña

Palo Alto)

9.1

Develop

infrastructure

for people’s

wellbeing

Increase %

infrastructure/

person

EDUCATION 100%

Of graduates

in the labor

market

94% Of young

graduates

working

4.3Ensure access

to formal

education

Increase % of

training


This document is a summary of the 2017 Sustainability Report, highlighting the company’s main governance, social and environmental milestones during the period.

It has been prepared in accordance with the GRI reporting standard, in its comprehensive option, and has been verified by an independent third party (Deloitte).

The complete document is availbale at:

www.conchaytoro.com/sustentabilidad

Documents

SUSTAINABILITY REPORT 2017 EXECUTIVE …SUSTAINABILITY REPORT 2017 EXECUTIVE SUMMARY RECYCLED Made from recycled material Viña Concha y Toro S.A. RUT: 90.227.000-0 Head Office: Avda