Sustainability

Sustainability Uncorked

At The Duckhorn Portfolio, we value our people, protecting our planet and operating our business to be best positioned for longevity. Since the beginning, we have instilled a sense of ownership and pride in the company and duty to our community. Our ESG Thesis, to continue to conduct our business conscientiously, sustainably and with minimal impact to the earth, guides our ESG program values, goal-setting strategies and our sustainable business practices. Our main goal with our ESG program has always been centered on finding the intersection between improved business efficiency and environmental and social responsibility.

Planet – Underpinning our work to support our planet are the seven distinct foundational areas where we focus our efforts: Climate Management and Emissions, Energy Management, Carbon Reduction Initiatives, Water Stewardship, Responsible Packaging and Waste, Biodiversity and Land Stewardship and Grower Initiatives. Integral to the success of our business is the preservation of our ecosystems, which we support through innovation and targeted land management.

People – Foundational to our social pillar are our seven key focus areas, which complete our people-centric programming: Talent Management, Professional Development, Diversity, Equity and Inclusion, Human Rights and Labor Practices, Health and Safety, Promoting Responsible Enjoyment, Contributing to our Communities and Quality Management. The work we do to strengthen our people and communities is a reflection of our values and our commitment to elevating our community and creating a healthy and diverse workforce.

Purpose – Our five key business-focused pillars are: Board of Directors and Committee Oversight, Management, Enterprise Risk Management, Governance Guidelines, Policies and Practices and Data Security and Customer Privacy. The work we do in each of these areas furthers our commitment to our stockholders by promoting the development of our long-term business interests and strengthens the accountability and transparency of the Company’s management.

FAQs

What are Duckhorn’s ESG goals and objectives? What is Duckhorn’s Diversity, Equity and Inclusion policy? How does Duckhorn promote responsible consumption? How does Duckhorn promote a safe work environment? What is Duckhorn doing to make its packaging more sustainable? How does Duckhorn manage its water usage and consumption?

What are Duckhorn’s ESG goals and objectives?

We formalized our ESG goals in our third ESG report where we outlined nine company specific goals. Progress made against each goal will be updated annually. These goals are:

Decrease our product footprint in our supply chain
Power over 30% of the energy needed for our production facilities, annually, using solar panels
Reduce water withdrawn per ton crushed at our production facilities
Continue to decrease emissions caused by our supply chain
Increase biodiversity in the soils of our Estate properties
Maintain and enhance gender representation in managerial positions at the Company
Decrease our Total Recordable Incident Rate (TRIR) three-year rolling average to be at or below industry level
Increase use of Volunteer Time Off (VTO) hours by employees in our community
Enact policies consistent with our business worldview

What is Duckhorn’s Diversity, Equity and Inclusion policy?

We embrace diversity, equity, and inclusion (DEI) as essential values. Our teams represent diverse backgrounds including geographies, cultures, ethnicities, religions, races, genders, sexual orientations, abilities and generations. We're dedicated to fostering an inclusive work environment across our business and within the wine industry, which is why we stand by our goal to maintain and enhance gender representation in managerial positions at the Company. We value equity as it ensures fair access to resources for all, while inclusion amplifies diversity by fostering understanding and equal opportunities for our employees and communities.

How does Duckhorn promote responsible consumption?

Duckhorn promotes responsible consumption in every area of our business, from tasting rooms to restaurants and at home. We adhere to applicable federal and state regulations and align ourselves with the California Wine Institute’s codes regarding advertising, responsible beverage service and direct shipping. Additionally, all of our tasting room employees are required to hold a certification of responsible beverage service training by the Alcohol Beverage Control.

In addition to onsite promotion of responsible consumption, we also take precautions in our marketing and advertising operations. Across our marketing platforms, Duckhorn adheres to the Wine Institute’s best practices, detailed in its Code of Advertising Standards and Digital Marketing Guidelines. Accordingly, we take the following actions to ensure our marketing and advertising practices support responsible consumption:

Promoting wine consumption as a mature lifestyle
Avoiding imagery of excessive drinking
Selecting appropriate brand ambassadors
Monitoring site activity

How does Duckhorn promote a safe work environment?

Safety culture at Duckhorn is a source of pride and a product of vigilance. We work to ensure safety is achieved at all levels of the business, guaranteeing the well-being of every employee regardless of their position in the company. We offer safety training “tailgates” for vineyard and winery operations teams as an accessible and informal way to discuss relevant safety topics. We also have an interdepartmental safety committee, comprised of a cross-section of employees, “safety champions”, in departments across locations to ensure consistent application of our safety policies and initiatives. Employees also undergo regularly scheduled role-based trainings, conducted in both English and Spanish. Each component of our robust health and safety program work cohesively towards our goal to decrease our TRIR three year rolling average to be at or below industry level and build a strong, safe work culture.

What is Duckhorn doing to make its packaging more sustainable?

We seek to reduce our landfill footprint by minimizing our use of climate negative packaging and ensuring that, whenever possible, our materials can be repurposed or returned to the earth. We continue to report against our highest baseline values for the circularity of our packaging, with 100% of the cork, paper and cardboard packaging used in our Wholesale and Direct to Consumer distribution made from renewable materials. Our latest update in responsible packaging, which aims to support our sustainable goals and create efficiencies with our preferred glass supplier, is a lightweight glass initiative, serving approximately 50% of our production. These efforts, among others, help progress two of our nine ESG goals, to continue to decrease emissions caused by our supply chain and to decrease our product footprint in our supply chain through the evaluation and execution of lightweight bottling opportunities among other sustainable packaging initiatives.

How does Duckhorn manage its water usage and consumption?

We believe that in making strategic decisions about conserving and optimizing water use, we are simultaneously increasing long-term stockholder value by decreasing the risks associated with water scarcity and generally eliminating unnecessary spend on and relating to utility costs. We optimize water use in the vineyards, invest strategically in unique water efficiency projects and employ monitoring practices to ensure our properties aren’t depleting water resources in the area. Additionally, we conduct an annual water risk assessment to understand the risk associated with where we operate. We are proud to continue to report that our vineyards and operations reside primarily in areas of moderate water risk. This, coupled with our water management practices, curates a comprehensive water stewardship program and help support our goal to reduce water withdrawn per ton crushed at our production facilities.