Sustainability
UncorkedRESPONSIBILITYAND
SUSTAINABILITY REPORT

2023

CONTENTS
A Letter from our CEO................................................................ 2
Welcome to Duckhorn................................................................. 3
FY23 ESG Goals............................................................................ 10
ESG Framework and Oversight................................................11

ENVIRONMENTAL.....................................................................19
Scope 1 and 2 Metrics........................................................... 20
Energy Management..............................................................22
Carbon Reduction Initiatives..............................................27
Water Stewardship.................................................................29
Responsible Packaging and Waste..................................32
Biodiversity and Land Stewardship.................................35
Grower Partners.......................................................................37

SOCIAL...........................................................................................38
Talent Management................................................................39
Professional Development...................................................42
Diversity, Equity and Inclusion.......................................... 44
Human Rights and Labor Practices ............................... 46
Health and Safety....................................................................47
Promoting Responsible Enjoyment...................................51
Contributing to Our Communities....................................53
Quality Management..............................................................55

GOVERNANCE............................................................................56
Board of Directors and Committee Oversight.............57
Our Management Team........................................................59
Enterprise Risk Management............................................. 60
Governance Guidelines, Policies and Practices............61
Data Security and Customer Privacy..............................63

APPENDIX.................................................................................... 64
Performance Data Table...................................................... 64
TCFD Index............................................................................... 70
Notes for our Readers............................................................71

WelcomeEnvironmental

SocialGovernanceA LETTER FROM OUR CEO

Because of these foundations, when we
went public, we embraced ESG reporting
as a natural evolution in our connection to
our planet, our commitment to our people,
our community and our uncompromising
approach to excellence in wine and business.
Establishing a formal and quantifiableapproach to ESG has been enlightening.
While it has shown many areas where we areexcelling, it has also pointed to areas where
work is needed.
Today, we have more than 460 full-time
employees working across ten winery brands,
nine production facilities, and seven tastingrooms. We also steward over 1,100 acresof Estate vineyards throughout California,
Oregon, and Washington State. As our flock of
employees, infrastructure and Estate program
have grown, a strong ESG program has neverbeen more important.

DEIRDRE MAHLAN
Interim President,
Chief Executive Officer
and Chairperson
The Duckhorn Portfolio has a long historyof commitment to taking care of theenvironment and being responsible membersof the communities in which we work andoperate. Our commitment to Employer
Social Responsibility Principles goes backto 1976, when Dan and Margaret Duckhorn
founded our Marlee’s Vineyard and hired
our first passionate employees. Luxury wine
is an agricultural-based industry, and ourpeople have been farming grapes for as
long as we have been making wine. As aresult, our connection to the environment
runs deep. Flowing from the values of our
founders, our culture has always championed
the belief that our people are the key to our
enduring success. It is our duty to ensure
they are treated fairly and with dignity, in an
inspiring environment where each person
can experience a rewarding career, while
contributing to Duckhorn’s success. As acompany founded by many small investors,
we have long understood the need forgood governance and for developing an
ethical framework for excellence in businessthat achieves impressive results for ourstockholders.
WelcomeEnvironmental

empowered to be an agent of change as
we work toward a healthier planet. Thisempowerment is also manifest in the Social
aspect of our ESG work. Our people are
our most treasured resource. When they
are happy, healthy, valued and empowered,success follows, for them and for ourbusiness. This is why we support professional
development, provide tuition reimbursement,
offer hybrid work options, held 160 safety
tailgates last year, and have a Volunteer Time
Off program that encourages employees
to volunteer eight hours at a charity eachyear with pay. It is also why we launched
the Margaret Duckhorn Excellence Awardto celebrate employees who exemplify her
courageous leadership and dedication to
stewardship and philanthropy.

SocialIn our previous report, we detailed our work
to quantify our environmental and social
impact to establish baselines and performancebenchmarks. Throughout Fiscal Year 2023
(FY23), we have made important strides in thisregard, including establishing clear metrics
for our Scope 1 and Scope 2 GreenhoouseGas ("GHG") emissions. In the area of energy
management, we reviewed energy projects
that have been beneficial from an energy-use
perspective while providing cost-savings,
leading us to embrace more solar power andenergy efficient equipment, vehicles andprocesses. We have also implemented rigorous
water monitoring at our facilities, establishingwater-usage baselines that show that ouruse is in line with, or better than, industry
averages, with 1,453.92 gallons of water used
per ton crushed in FY23. As the proverb says,“measure twice, cut once.” Now, with reliabledata in hand, we are driving meaningful
reductions in electricity, water usage, and C02
emissions in ways large and small, as detailed
in this report.

We are perhaps most proud of ourcommitment to gender diversity. Currently,
52% of leadership positions are held by female
employees, including our CEO, CFO, CMO andour Duckhorn Vineyards, Decoy, Goldeneye,
Postmark and Migration winemakers. Throughrobust representation, we inspire our diverse
community of employees to achieve their fullpotential, while achieving greater retention.
We have a rate of employee turnover below
the industry average, 30% of our employees
have been with us for five years or more, andwe achieved 100% employee retention at
Waterfowl Winery in FY23.
There are those who look at ESG and ask, “Butis it good for business?” As the premier scaled
producer of luxury wines in North America,
our answer is an unequivocal “Yes.” From thevitality of our vineyards to the well-being of
our employees to the integrity and ethicalbusiness practices that have made us one of
the most trusted names in luxury wine, our
ESG efforts reflect our values and provide acompelling value proposition that benefits ourplanet, people, and stockholders.

We have also transformed our culture. Today,from our vineyards and barrel rooms to our
Board of Directors ("Board"), everyone isGovernance

The Duckhorn Portfolio Responsibility and Sustainability Report

2

WELCOME TO
DUCKHORN

The Duckhorn Portfolio is the premierscaled producer of luxury wines inNorth America. We have delighted
millions of consumers with authentic,
high-quality, approachable wines
for over four decades. Founded by
our namesakes Dan and Margaret
Duckhorn in 1976, we began bypioneering Merlot wines in Napa
Valley and now produce a curated
and comprehensive portfolio of
highly acclaimed luxury wines acrossmultiple winery brands, varietals,
appellations and price points.

MISSION
To have our wines poured
and enjoyed whereverfine wines are served
throughout North America
and the world.

Photo by: Nat & Cody Photography

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The Duckhorn Portfolio Responsibility and Sustainability Report3

O U R VA L U E S A N D C O M M I T M E N T T O S U S TA I N A B I L I T Y
Duckhorn values supporting our people, protecting our planet and operating our business to be
best positioned for longevity. From the beginning, our founders instilled a sense of ownership andpride in the company. This year, we announce our "ESG Thesis," which guides our goal-setting
strategy as well as our sustainable business practices.

Continue to conduct our business conscientiously,
sustainably and with minimal impact to the earth.
Over the past year, we have continued our efforts to unearth what makes Duckhorn special,where we have room to grow and have focused on highlighting those areas that contribute to theenhancement of our company and community. In FY23, we concentrated on the consolidation of ourdata, now that we have established several baseline metrics, analyzing trend lines for those metrics
and determining the most fruitful areas of emphasis. To that end, we are proud to have expanded
our data this year to include our Washington operations in our scope 1 and 2 emissions, catalogedbaseline water metric data at our production facilities, developed and tracked new health and safety
metrics and expanded supply chain disclosures, among other areas.

Margaret Duckhorn Excellence AwardAt the end of FY23, we launched the inaugural Margaret Duckhorn Excellence Award. This award wasa new way for our organization to honor our beloved co-founder, Margaret, while also recognizing
employees who embody her ideals and keeping her memory alive and well within The Duckhorn
Portfolio. Through this award, employees had the opportunity to nominate someone within theorganization whom they believe represents one or more of Margaret’s distinguished values, namely:
Courageous Leadership, Stewardship & Philanthropy, Graciousness, and Devotion. The recipient of theaward received a monetary bonus, a beautiful keepsake to memorialize the honor, and the opportunity
to select a non-profit organization to receive a monetary donation on behalf of the company.
We were thrilled with the participation and number of nominations that we received for this newly
launched award, which made the process of selecting one standout recipient challenging. We are
excited to announce that the 2023 recipient of the inaugural Margaret Duckhorn Excellence Award is
Eric Hudock. Eric serves as our Vice President of Hospitality. He joined The Duckhorn Portfolio in 2014as our Hospitality & Retail Sales Manager for Paraduxx Winery. Carefully growing his responsibilities andscope of oversight over the past nine years, he has motivated his team and inspired his colleagues withhis creative innovation, infectious positivity, and empathy towards all.

Eric Hudock,
Vice President, Hospitality

Margaret Duckhorn,
Co-FounderWelcomeEnvironmental

SocialGovernance

The Duckhorn Portfolio Responsibility and Sustainability Report

4OUR BRAND
Underpinning our success is a relentless focus on
quality that has been ingrained in our culture since theinaugural harvest of our iconic Three Palms Vineyard in
1978. The Duckhorn Portfolio has consistently received
exceptional reviews across varietals, geographiesand price points from the industry’s top critics andpublications. Two of our wines, Kosta Browne Sonoma
Coast Pinot Noir and Duckhorn Vineyards Napa Valley
Three Palms Vineyard Merlot, have received one of theindustry’s most prestigious awards, Wine Spectator
magazine’s Wine of the Year.

OUR WINERIESNOTEWORTHY IN 2023

On November 16, 2023, we were excited to announce that we entered into anagreement to acquire Sonoma-Cutrer Vineyards. Sonoma-Cutrer Vineyards wasfounded in 1973 and released its first wine in 1981. It has grown to be one of
California's best-known luxury Chardonnay brands, famous for its refined style andcommitment to merging traditional and innovative winemaking techniques. “We
are delighted to welcome Sonoma-Cutrer Vineyards into The Duckhorn Portfolio,”
said Deirdre Mahlan, the Company’s Interim President, Chief Executive Officer andChairperson. “Sonoma-Cutrer is an iconic, highly acclaimed winery brand witha long history of crafting exceptional wines in a timeless style and is a perfect
addition to our thoughtfully curated portfolio of luxury wines." The transaction is
anticipated to be completed in the third quarter of the Company’s fiscal year 2024,
subject to regulatory approvals and customary closing conditions.

Each winery brand boasts its own winemaking
team to create distinct experiences for consumers,
ensure product quality and continuity and encouragesustainable farming practices. In this era that favors
trusted brands with sound values, we believe partners
that share our principles will be best positioned
to thrive. From our vineyards to our wineries, ourorganization is comprised of passionate, talented
employees, including a highly tenured executive team,
who draw upon decades of luxury wine experienceto guide us through the unique challenges andopportunities of the wine industry.
From our inaugural vintage of 800 cases each ofCabernet Sauvignon and Merlot in 1978, to the
expansion into Sauvignon Blanc in 1982 and theintroduction of on-site tasting in 2001, Duckhorn
Vineyards has cultivated a tradition focused on quality,
consistency and excellence that continues today.
Today, we collaborate with a diversified network ofmore than 300 partners, including long-standing grape
growers and a small number of trusted bulk wine
producers, to supplement and complement our worldclass Estate vineyards, located primarily throughout thevaried microclimates of Northern and Central California
and Washington. We are proud of our exceptional
winemaking teams at each of our winery brands,
who work hard to create distinct experiences for
consumers, maintain quality standards and continuityof the Duckhorn brand and facilitate our continued
growth. These farming and winemaking teams integratesustainable, efficient choices whenever possible.

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The Duckhorn Portfolio Responsibility and Sustainability Report5

A PIO N E E R I N LU X U RY W I N E F OR N E A R LY 4 5 Y E A RS

First vintage

First vintage

First vintage

First vintage

First vintage

AcquiredFirst vintage

1978

1985

1994

2001

2012

2017

2018

1976

1982

1989

1996

2008

2015

2018

2023

Founded by
Dan & Margaret
Duckhorn

Expansion into
white wineFirst Estatevineyard
acquisition

First vintage

Decoy
expands into
multiple varietals

Acquired
Three
Palms
Vineyard

Acquired

Acquired
Geyserville
Winery andProduction
Facility

Geyserville Winery

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The Duckhorn Portfolio Responsibility and Sustainability Report

6

OUR WINEMAKING PROCESSCULTIVATION AND HARVESTING

CRUSHING

FERMENTATION

Grapes sourced from Estate vineyards,
third party growers and custom bulk
wine partners

Grapes crushed at one of
our wineries or a custom
crush partner facility

Process grapes
according to varietal
types

AGING AND STORAGE

FILTRATION

Grapes grown at our Estate vineyards aregrown conscientiously and cared for by ourvineyard teams. Most of our Estate vineyards
are certified to a third-party sustainability certification
and utilize sustainable agriculture practices that limit
water and energy use. Please see the Biodiversity andLand Stewardship section of this report for additional
information.

WelcomeEnvironmental

Social

BOTTLING AND PACKAGING

When choosing packaging materials for ourwines, we are focused on selecting materials
that are high quality and that best present our
luxury product. With 27% of our packaging materials
made from previously recycled and/or renewablematerials and 99% of our packaging being recyclable,
reusable and/or renewable, we are always working tominimize our footprint. Now, with nearly 50% of ourbottles in lightweight molds, we are further minimizing
our packaging impact.

Governance

PRESSING

DISTRIBUTION

With shipping and packaging accounting forsuch a significant portion of GHG emissions
in the wine industry at large, we work to be
conscientious of our GHG contributions. We continue
to offset the carbon emissions associated with theinternational portion of the transportation of our
Kosta Browne Burgundy Series wines. Our lightweightbottle initiative also aids in the decrease of ourtransportation emissions. We will continue to work to
reduce our emissions and energy use while offsetting
the emissions we cannot.

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7

FY23 HIGHLIGHTS

9

OVER

$305K

WINEMAKING
FACILITIESDONATED160

TRAINING
TAILGATESSCOPE 2

1,037

1,230.3

Metric Tons CO2e Metric Tons CO2e

48

HOURS

49/51%
MALE

Employee Gender Diversity

NINE
UNIQUE
ESG-CentricCompany Goals

WelcomeEnvironmental

SocialGovernance

Leadership
Positions
held by
WOMEN

3%
ESTATE
VINEYARDS
IN REGIONS OF

Grower Vineyards in Regions of Low toMedium/High Baseline Water Stress

VOLUNTEER
TIME OFF

FEMALEEMISSIONS1

82%

64

%

Energy consumed
supplied from gridelectricity

SCOPE 1

52%

HIGH+

BASELINE
WATER STRESS

99%

Recyclable, reusable and/or compostable packaging

50 50+
Number of states and countries
where Duckhorn wines are sold#1

Largest Pure-Play
Luxury Wine
Companyin the U.S.

The Duckhorn Portfolio Responsibility and Sustainability Report8

A B O U T T H I S R E P O RT
In our previous ESG reports, we aligned our ESG program with
the United Nations Sustainable Development Goals ("UN SDGs").
Established in 2015, the UN SDGs are designed to support a world that
benefits both people and planet. As we crafted our third Responsibility
and Sustainability Report, we prioritized reporting against our FY22 ESG
disclosures as well as expanding our disclosure to include other items
considered to be best practices of public companies. We also furtheraligned with relevant ESG frameworks in response to feedback from ourinternal and external stakeholders. Our FY23 report aligns with the Task
Force on Climate-Related Financial Disclosure ("TCFD"), Sustainability
Accounting Standards Board ("SASB") and UN SDG frameworks. We
have also disclosed metrics in the appendix of this report in line withthe material metrics recommended by the SASB in the standards for
Alcoholic Beverages and Agricultural Products.
The following ESG program values underpin Duckhorn's work tocontribute to and support a more sustainable world and are aligned to
the relevant UN SDGs. We used our ESG program values to establish ourinaugural set of ESG goals, more thoroughly explained on page 10.

Duckhorn ESG Program Values

UN SDG Alignment

Supporting positive consumption
habits and overall health

Relevant Company Goals•Decrease our total Recordable Incident Rate (TRIR) threeyear rolling average to be at or below industry level•Increase Volunteer Time Off (VTO) hours in our community
by employees

Encouraging and supporting Diversity,
Equity, and Inclusion practices•Enact policies consistent with our business worldview

Protecting valuable and limited water
resources through sustainable water
management•Reduce water withdrawn per ton crushed at our production
facilities

Taking strong climate action towards a
low carbon future•Continue to decrease emissions caused by our supply chain

Ensuring our consumption andproduction patterns are sustainable bydesign•Decrease our product footprint in our supply chain•Using solar panels at our production facilities, power over
30% of the energy needed for our production facilities
annually•Increase biodiversity in the soils of our Estate properties

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The Duckhorn Portfolio Responsibility and Sustainability Report

9F Y23 ESG GOALS
Based on feedback from our internal and external stakeholders, it was a priority for us to formalize
our ESG-specific goals at the company. Accordingly, over the course of FY23, we worked to align on
ESG-focused goals with the relevant internal subject matter experts at Duckhorn, review these goals
with leadership and receive buy-in from the departments that will ultimately "own" the strategic
execution of the goals. These goals cover the important topics of supply chain emissions, renewableenergy investments, water usage, biodiversity, gender parity, health and safety and community
engagement. We are delighted to be able to share these goals for the first time this year, andspecific updates with respect to Duckhorn’s pathway to achievement of these goals, annually.

F Y23 ESG PRIORITIESStatus

Welcome

Topic

Progress (As Of November 2023)

Decrease our product footprint in our
supply chain

See Responsible Packaging and Waste
section for more information on our
progress towards this goal

Long-term(3+ years)

Using solar panels at our production
facilities, power over 30% of theenergy needed for our production
facilities annually

See Energy Management section for more
information on our progress towards thisgoal

Short-term(12-18 months)

Reduce water withdrawn per ton
crushed at our production facilities

See Water Stewardship section for more
information on our progress towards thisgoalLong-term(3+ years)

Continue to decrease emissions
caused by our supply chain

See Responsible Packaging and Waste
section for more information on our
progress towards this goal

Mid-term(2-3 years)

Increase biodiversity in the soils of ourEstate properties

See Biodiversity and Land Stewardship
section for more information on our
progress towards this goal

Short-term(12-18 months)

Maintain and enhance gender
representation in managerial positions
at the Company.

See Diversity, Equity and Inclusion section
for more information on our progress
towards this goal

Short-term(6-12 months)

Decrease our Total Recordable
Incident Rate (TRIR) three-year rolling
average to be at or below industry
level

See Health and Safety section for more
information on our progress towards thisgoalLong-term(3+ years)

Increase Volunteer Time Off (VTO)
hours in our community by employees

See Contributing to our Communities
section for more information on our
progress towards this goal

Short-term(12-18 months)

Enact policies consistent with ourbusiness worldview

See Human Rights and Labor Practices
section for more information on our
progress towards this goal

Short-term(6-12 months)

Environmental

SocialGovernance

Un SDG Alignment

Time To Meaningful
ProgressGoal

The Duckhorn Portfolio Responsibility and Sustainability Report10,
DUCKHORN'S ESG FR A ME WORK
We employ a holistic approach to addressing theCompany’s risks and opportunities by making
sustainable choices that consider both our planet
and our people. We believe this allows us to build
sustainable, long-term value for our stockholders.

BOARD
OF
DIRECTORSOur commitment to excellence, diversity, integrity,
innovation, environmental sustainability and good
governance is exhibited every day by demonstrating
the utmost respect for our employees, customers,
trade partners, land, communities and stockholders.
Our management team and Board support our
mission with an unwavering commitment totransparency and accountability. Over the past year
we we narrowed our focus and continued to improve
Duckhorn’s ESG reporting process, Key Performance
Indicators ("KPIs") development, as well as ouroversight structure as we continue to implement
relevant and thoughtful ESG initiatives within ourcompany. ESG initiatives demand participation
and buy-in from all departments, but these efforts
are coordinated and led by the Executive Vice
President, Chief Strategy and Legal Officer and the
ESG Team. ESG at Duckhorn is about uncoveringmuch of the work we already do to maintain ahealthy planet, people and business, while offering
the framework to perfect these initiatives. Our ESG
program at Duckhorn would not be possible without
the partnership of our esteemed colleagues fromeach of our key departments at the Company. Ourinaugural Responsibility and Sustainability Report,
published in 2021, set the tone for our business anddefined our plan to identify and assess relevant ESG
risks and opportunities in the future. In 2022, we
expanded upon this by quantifying our impact on
the industry, where possible, establishing baseline
metrics and further discussing our current and futuresustainable business practices. In our 2023 report,
we collected further data to build on baseline metrics
set in 2022 and find new metrics worthy of inclusion.
We expanded the scope of some of our disclosuresand have outlined our first set of ESG goals, which
we will report progress on each year - an exciting
development for our ESG program.

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The Board of Directors and its Committees are responsiblefor incorporating ESG into the company's risk management
framework and strategic decision-making to support long-term
growth and health of the Company

Nominating and Corporate Governance Committee
Audit Committee

EXECUTIVE
MANAGEMENTThe Chief Strategy and Legal Officer is responsible for
executive ESG leadership and oversight of company-wide
ESG objectives coordination

Executive Vice President, Chief Strategy and Legal Officer

ESG
TEAM

The ESG Team and the respective subject matter experts
are responsible for execution of the ESG strategies at theoperational level

Health and Safety
PeopleVineyard
Production
Information Technology

The Duckhorn Portfolio Responsibility and Sustainability Report11Assessment of ESG Priorities

Every year, we assess potential ESG priorities and areas of action by
conducting a broad stakeholder inquiry. We rely on (i) feedback frominternal stakeholders, (ii) analyses of ESG frameworks, (iii) review of best
disclosure practices and (iv) perspectives from the investor communityand other external parties.
• Internal Feedback: The ESG Team is in constant communication withthe relevant departments at Duckhorn, and we have considered
and incorporated feedback from each to determine focus areas for
current and future years that are in line with our business practices
and worldview.

Duckhorn’s ESG Areas of Action

The selected ESG focus areas were chosen based onalignment with business strategy, engagement with theinvestor community and correlation to mitigation ofmaterial risk.

Planet• Climate Risk Management• Energy Efficiency• Carbon Footprint• Water Stewardship• ESG Framework Analysis: We identified, analyzed and summarized
key factors addressed in ESG frameworks that are recognized bystockholders broadly, including SASB standards, TCFD and UN SDGs.
Our regularly reported performance data table that discloses our
KPIs can be found at the back of this report. This data table includes
historical FY22 data in addition to our new
FY23 metrics.

• Responsible Packaging• Best Disclosure Practices: Each year, we review market best practices
and peer disclosures to assess how Duckhorn can best communicate
our ESG priorities and progress and align with industry best practices.

• Health and Safety• External Perspectives: We considered the priorities of current andprospective investors through ESG-focused inventor engagements,
to ensure our perspectives are attuned to the areas of importance tothe market. We also incorporated perspectives from our suppliers andcustomers and feedback from the communities in which we operate.

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SocialGovernance• Biodiversity

People• Human Capital Management• Professional Development• Diversity, Equity and Inclusion• Responsible Beverage Service Practices• Community Engagement and Philanthropy

Business• Enterprise Risk Management• Governance Guidelines, Policies and Practices• Data Privacy and Cybersecurity

The Duckhorn Portfolio Responsibility and Sustainability Report12

C L I M AT E R I S K M A N A G E M E N T
In conjunction with our environmental and sustainability initiatives, we continue building aframework to report GHG emissions and related climate impacts. The data collected for FY23
guides our future disclosures regarding our emissions footprint and the related quantifiable financial
impacts resulting from global warming.

Governance

The wine industry has always been forward-thinking in how it considers climate-related risks andopportunities. Managing our climate risks and opportunities benefits our business and is an integral
part of management’s decision-making when it comes to climate protection. At Duckhorn, climaterelated discussions are ongoing at every level of the business.
As a public company, we implement formalized oversight of our ESG initiatives to increasetransparency, streamline management and enhance communication. Our climate-related initiatives
are overseen by the Company’s Board, often through direct engagement by the Nominating
and Corporate Governance Committee. Guided by the Committee’s charter, the Nominating andCorporate Governance Committee reviews strategies, activities and policies regarding ESG-related
matters, including those related to climate change, and makes recommendations to the Board.
Internal oversight led by the President, Chief Executive Officer and Chairman provides guidancewith respect to the strategic priorities of the ESG initiatives in the broader context of the Company's
goals and priorities. At the management level, the Executive Vice President, Chief Strategy andLegal Officer is primarily responsible for the day-to-day strategy and execution of the Company’s
climate-related work. Our Executive Vice President, Chief Operating Officer (“COO”) oversees the
day-to-day management of our vineyards, wineries and production, making him keenly aware of
how climate risks impact production directly and allowing him to fluently discuss climate risks withthe broader management team. Within the Strategy and Legal Department, the ESG Team manages
the execution of and supports Duckhorn’s ESG priorities through engagement and coordination
with internal and external stakeholders, including investors, to ensure there is alignment andunderstanding with respect to goals and priorities.

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The Duckhorn Portfolio Responsibility and Sustainability Report13Board and Management Oversight of
Climate Risks
At the Board and Committee level, themanagement team provides a crossdisciplinary climate-related briefing annually to
the Board. During these updates, management
presents to the Board on climate risk
mitigation and its impact on business strategy.
This allows our Board to be proactively
informed of ESG risks and opportunities
and to enhance optimal, innovative ways tomanage climate risk. Our conversations with
the Board on ESG topics afford us the unique
opportunity to establish the connections
between sustainability goals and delivery offinancial results.
Our Nominating and Governance Committee
serves as the primary vehicle of directoversight for our climate-related initiatives
at the director level, discussing updates
presented by the Company’s managementand ESG Team and providing direction
with respect to the mitigation of climaterelated risks. This oversight is enhancedby the input of the Board collectively andindividual directors, who regularly provide
guidance regarding the Company’s broader
ESG initiatives, the optimal ways to achieve
discrete goals and our communication
strategy. The Audit Committee is a secondary
vehicle of ESG oversight, managing theenterprise risks facing the Company, within
which sustainability risks factor heavily. We
have developed standardized frameworks for
identifying, monitoring and mitigating risk.
For example, the Audit Committee provides
broad oversight of the risk assessment andmitigation structure and provides insight
into how management can address risks andseize opportunities that arise. Management
undertakes a quarterly cross-disciplinary
exercise to determine the salient risks facing
the Company, organized by likelihood of
occurrence and severity of consequence. The
current and proposed mitigation techniques
are discussed and refined throughout the year.

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The ESG Team works interdepartmentally tofacilitate the creation and maintenance ofsustainable initiatives and regularly partners
with the operations side of the business to
put in place strategies to decrease climate
risk. For example, this year, the ESG Team
partnered with engineering to conduct energy
audits at our production facilities to determine
areas of focus and best practices. We aim toincrease opportunities for cross-collaboration
to build climate resistance, which beganwith with a Climate Change Consortium in
November 2022, bringing together key groupsof Duckhorn team members to explore theeffects of climate change on our business.
We hope to continue our internal work andinter-departmental collaboration efforts in the
coming year.
Duckhorn management and the ESG Team
ensure employees are working in pursuitof our shared business goals and actively
engaged in climate risk management in theirrespective areas of the business. We continue
to refine our internal reporting structure bystreamlining reporting of climate-related
metrics and establishing formal lines forclimate risk management.
Our production team has a meaningful
and long-term role in our climate-related
strategy. From managing weather dynamics
to optimizing solar power, our production
team is heavily impacted by climate-relatedrisks and opportunities. At Duckhorn, thesustained dialogue between management
and the production team leads to actionablestrategies for climate-related risk management
and sustainable growth in the long term. This
continuous dialogue and active partnership
between Duckhorn management and all facetsof production have helped forge the executionof numerous climate-conscious projects,
including the installment of photovoltaic solar
systems at a few of our facilities.

The Duckhorn Portfolio Responsibility and Sustainability Report

14

Climate Risk Assessment

We employ a holistic approach to addressing the Company’s climate-related risks and opportunities.
We place equal weight across our three ESG priorities: planet, people and business. It is ourview that being responsive to climate change, being socially conscious and delivering businessresults are not mutually exclusive. By making responsible and sustainable choices with respect
to both environmental- and social-related matters, we can build positive, long-term value for ourstockholders, employees and communities.
Our Board and its Committees are responsible for managing and mitigating Duckhorn’s enterpriserisks, including those related to climate change. The Board oversees Duckhorn’s climate-related
risk mitigation strategies and execution, led by the Company’s management. Our COO is involvedin the day-to-day management of our vineyards and wineries, making him acutely aware of how
climate risks impact production directly and providing him the ability to fluently discuss climate
challenges with the broader management team. In addition to specific discussions around climate
issues between the COO and his production team, Duckhorn’s weekly management meetings serve
as a forum to discuss any business issues that touch climate matters. The ESG Team works directlywith the COO and his team members to collaborate on ESG initiatives to advance our program in amanner consistent with the perspectives brought forth by both parties.

Climate Change Management

Throughout the climate risk management process, there is iterative dialogue between management
and the production team regarding the climate impacts and associated mitigation strategies of
specific winemaking activities, including the real-time discussion of how specific weather events
impact harvest and yields. These discussions led to our first Climate Change Consortium symposiumin 2022, bringing forth an opportunity for all key internal stakeholders to gather and problem solve
the Company’s most pressing climate risks. We continue these important dialogues both formallyand informally and look to hold sustainability-focused seminars in the future. Through this and otherobjectives, we work to become more systematic and detailed in our processes and documentation
with respect to climate risk management by evaluating opportunities to educate ourselves andothers.
We are conscious that adverse events related to climate change are likely to become more prevalentover the next few years. Extreme temperature and precipitation events, as well as weather patterns
with episodic droughts, have increased our focus with respect to both drought and wildfire severity.
We have managed our water resources well despite episodic drought in California, in addition toduring heavy precipitation in our most recent growing season. Even so, we recognize the criticalimportance of water conservation in our grape cultivation.

Migration Winery

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The Duckhorn Portfolio Responsibility and Sustainability Report15

Wildfire Risk Management

In response to historical wildfire events, we continue to implement fire prevention practices in our
vineyards, such as vegetation clearing, and work in consultation with local firefighting organizations
to enhance preparedness and resiliency. Despite the clear threat that wildfire poses, vineyards are afirebreak in most fire events. Additionally, grapevines are incredibly resilient in the aftermath of fire,recovering quickly if not severely burned.1 Over FY23 we were lucky to experience few wildfires in
the areas in which we operate, but always remain poised to mitigate wildfire risk.

Grape Sourcing and Diversification

Our procedures to manage risks include our long-term cultivation of a strong and agile supply
chain, making possible our efficient and successful production of luxury wine. Our supply chain
is highly diversified, as we source grapes from our Estate vineyards and more than 300 trusted
third-party growers and bulk wine suppliers, many of whom have sold us grapes for decades. Our
32 owned and leased Estate vineyards are equally diversified by being non-adjacent and varied
by climate across California and Washington. This allows us to be nimble with our grape supply,
providing opportunities to shift our sourcing away from a given vineyard in the event it is impacted
by a localized adverse event. Not only does this diversified model naturally insulate adverse climate
impacts, but our diversity in supply also offers immense runway and opportunity for wine supply as
we are not limited by Estate land. Both of these concepts strengthen our business’s resiliency, andwe believe are important in achieving sustained strong financial performance.
Approximately 90% of our total production is sourced fromthird-party growers and, to a significantly lesser extent, thebulk wine market. Our ability to adjust the composition of aparticular vintage among our grape and bulk wine sourcing
supply channels allows us to tailor inputs based on varying
market or seasonal factors.

10%
EstateFruit

90%
GrowerFruit

Benefitsof our diversified sourcing model
Luxury Credentials • Reliability of Supply • Rapid scalability • Cost Management

1

Thach, Liz (2018) : The amazing resilience of wine grape vineyards, Wine Economics and Policy, https://doi.org/10.1016/j.wep.2018.04.002

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The Duckhorn Portfolio Responsibility and Sustainability Report16

C L I M AT E R E L AT E D R I S K A N D O P P O RT U N I T I E S
Policy and Legal Risks

We have a long history of crafting wines
year after year, at scale, that consistently
meet the highest standards of quality. Given
our industry’s exposure to climate risks
and extreme weather events, we regularly
evaluate the impacts of climate change on
our business and transparently disclose ourefforts to effectively manage the risks andopportunities presented by climate change.
We are committed to continuing to takemeasures to achieve climate resiliency andexpand our agile supply chain with highly
diversified grape sourcing to help ensure wemitigate the impact of climate change andlocalized agricultural risk. On this page, youwill see a summary of certain risks to ourbusiness, which are discussed in more detailin Duckhorn’s FY23 Annual Report on Form
10-K, including those relating to transition
risks and acute risks with respect to climatechange. Please see the “Risk Factors” sectionof our Annual Report on Form 10-K for more
information on these and other risks that
could have a material adverse impact on ourbusiness, operations and financial results.

TRANSITION RISKS• Additional environmental requirements,
and potential market pressures related toclimate change, could affect our business,
operations and financial results.
• As a producer of alcoholic beverages, weare regularly the subject of regulatory
reviews, proceedings and audits bygovernmental entities, any of which could
result in an adverse ruling or conclusion,
and which could adversely affect ourbusiness and future prospects.
• Changes in foreign and domestic laws andgovernment regulations to which we are
currently subject, including changes to themethod or approach of enforcement ofthese government rules and regulations,
may increase our costs or limit our ability
to sell our wines into certain markets, which
could adversely affect our business.
• From time to time, we may become subject
to litigation specifically directed at thealcoholic beverage industry, as well as
litigation arising in the ordinary course ofbusiness.

Transitioning to a lower-carbon economy may
entail extensive policy, legal, technology andmarket changes to address mitigation andadaptation requirements related to climatechange. Depending on the nature, speed
and focus of these changes, transition risks
may pose varying levels of financial andreputational risk to organizations. Transition
risks include, but are not limited to, thefollowing:• If we are unable to secure and protect
our intellectual property in domestic andforeign markets, including trademarks for
our winery brands, vineyards and wines, thevalue of our winery brands and intellectual
property could decline, which could have amaterial and adverse effect on our business,
operations and financial results.
• New and changing environmental
requirements, and new market pressuresrelated to climate change, could materiallyand adversely affect our business, results ofoperations and financial condition.

Technology Risk

• A failure of one or more of our key IT
systems, networks, processes, associatedsites or service providers could have an
adverse impact on business operations,and if the failure is prolonged, our financial
condition.
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The Duckhorn Portfolio Responsibility and Sustainability Report17Market Risk

PHYSICAL RISKS• If we are unable to identify and obtain adequate supplies of quality agricultural, raw andprocessed materials, including corks, glass bottles, barrels, winemaking additives and agents,
water and other supplies, or if there is an increase in the cost of the commodities or products,
as a result of inflation or scarcity, our profitability, production and distribution capabilities could
be negatively impacted, which would materially and adversely affect our business, results ofoperations and financial condition.

Physical risks resulting from climate change
can be event driven (acute) or longer-term
shifts (chronic) in climate patterns. Physicalrisks may have financial implications fororganizations, such as direct damage toassets and indirect impacts from supply
chain disruption. Organizations’ financial
performance may also be affected by changes
in water availability, sourcing and quality; foodsecurity; and extreme temperature changes
affecting organizations’ premises, operations,
supply chain, transport needs and employee
safety. Physical risks include, but are notlimited to, the following:• The impact of U.S. and worldwide economic trends and financial market conditions could
materially and adversely affect our business, liquidity, financial condition and results ofoperations.
• Increases in labor costs, labor shortages, and any difficulties in attracting, motivating, andretaining well-qualified employees could have an adverse effect on our ability to successfully
manage our business, maintain our reputation within the industry and execute our strategic
objectives, which could materially and adversely affect our operating efficiency and financial
condition.

Acute Risk

• If we are unable to obtain adequate supplies of premium grapes and bulk wine from third-party
grape growers and bulk wine suppliers, the quantity or quality of our annual production of wine
could be adversely affected, causing a negative impact on our business, results of operations andfinancial condition.

• Natural disasters including fires, floods
and earthquakes, some of which may be
exacerbated by climate change, could
destroy, damage or limit access to ourwineries and vineyards, and the locations
at which we store our inventory, which
could adversely affect our business andoperations.

• A reduction in consumer demand for wine, which may result from a variety of factors, including
demographic shifts, desirable substitutes and decreases in discretionary spending, could
materially and adversely affect our business, operations and financial results.
• The consumer reception of the launch and expansion of our product offerings is inherently
uncertain. New producers may present new and unknown risks and challenges in production andmarketing that we may fail to manage optimally and could have a materially adverse effect on
our business, operations and financial results.
• Due to the three-tier alcohol beverage distribution system in the US, we are heavily reliant on
our distributors and government agencies that resell alcoholic beverages in all states except
California, where we self-distribute our wines to retail accounts. A significant reduction in
distributor demand for our wines would materially and adversely affect our sales and profitability.

• Inclement weather, drought, pests, plantdiseases and other factors could reduce theamount or quality of the grapes available toproduce our wines, which could materiallyand adversely affect our business andoperations.

• Our marketing strategy involves the continued expansion of our direct-to-consumer channel,
which may present risks and challenges that we have not yet experienced or contemplated, orfor which we are not adequately prepared. These risks and challenges, including changes to the
judicial, legal or regulatory framework applicable to our DTC business, could negatively affect oursales in these channels and our profitability.
• Failure to appropriately address certain emerging ESG matters important to our investors could
have a material adverse impact on our reputation and, as a result, our business.

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The Duckhorn Portfolio Responsibility and Sustainability Report18

E N V I R O N M E N TA L

Duckhorn is a part of an establishedagricultural industry that prides itself
on being good stewards of the landand committed to the conscientious
use of natural resources. Using
coordinated industry action to create
sustainable standards and bestpractices to tackle climate change, weare responsive to shifting agriculturalprocesses while maintaining the highquality of our products. Seeking
change in the environmental sphererequires bold action and analysis of
all kinds of environmental impacts.
We are dynamic in our responsivenessto environmental opportunities
and always seek to find the optimal
confluence of improved businessefficiency and environmental
preservation.

IN THIS SECTION:
CLIMATE RISK MANAGEMENT AND TCFDREPORTING
ENERGY MANAGEMENTCARBON REDUCTION INITIATIVESWATER STEWARDSHIPRESPONSIBLE PACKAGING AND WASTE
BIODIVERSITY AND LAND STEWARDSHIPGROWER PARTNERS

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19

SCOPE 1 AND 2 METRICS
Calculating our scope 1 and scope 2 emissions is an important step necessary to understand theimpact our operations have on the environment. Through tracking and continuous evaluation of
our scope 1 and scope 2 emissions, we are working to do our part to ensure much-needed global
consistency in climate-related disclosure. It is our view that increased transparency with respect to
ESG metrics, like scope 1 and 2 emissions, helps offer our consumers, stockholders and employees
the information needed to make informed decisions.
Scope 1 emissions include direct GHG emissions from our owned or controlled sources. This includes
emissions from on-site energy like natural gas, fuel and refrigerants, combustion in owned orcontrolled boilers and furnaces, and emissions from fleet vehicles. Scope 1 emissions encompass
process emissions that are released during industrial processes, and on-site manufacturing. Our
reported FY23 scope 1 emissions saw an increase, which we attribute to a few factors, namely(i) we improved our data collection process over the past year, and thus were able to capture
more comprehensive fuel usage data, (ii) we had a wet spring during the growing season, which
led to more mowing, cultivation and spray passes this year, contributing to an increase in diesel
use and (iii) we increased the scope of our operations, which leads to more fuel usage in line withmaintaining these facilities and vineyards.
Scope 2 emissions include indirect GHG emissions from purchased or acquired energy, likeelectricity steam, heat or cooling, generated offsite and consumed by us. For example, electricity
purchased from the utility company is generated offsite, so it is considered indirect emissions. Our
FY23 scope 2 emissions were in-line with our expectations with the inclusion of our Washington
operations in the calculations.

/$

Scope 1
Emissions
Scope 2Emissions

1,230.3

5.64

Metric Tons CO2eper Million Dollars
Net Sales

1,037
Metric Tons
of CO2eMetric Tons of CO2e

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20

SCOPE 1 EMISSIONS
Gallons

Metric Tons
of CO2

Metric Tonsof CH4

Metric Tons
of N2O

Metric Tons
of CO2e

GigaJoules
ConsumedSee Note† Gasoline

36,222.4

307.1

0.00800.0020307.7

4,620.4

See Note‡

Diesel

39,722.6

404.100.03000.0220411.5

5,066.9

Dyed
Diesel

4,995.8

0.05

0.00200.00040.2

637.2

Propane

12.4

12.50

0.00060.0001

12.5

277.0

Fuel

MMBtu

Metric Tons
of CO2

Metric Tonsof CH4

Metric Tons
of N2O

Metric Tons
of CO2e

GigaJoules
Consumed

NaturalGas

4,077.4

216.3

0.004

0.0004216.6

4,301.9

Total Combustion

Fuel

Total Combustion

LPG

47.3

0.3

0.013

0.00281.4

6.0

4,124.7

940.4

0.058

0.028

949.9

14,909.4

Sourcekgs

Metric Tons
of CO2

Metric Tonsof CH4

Metric Tons
of N2O

Metric Tons
of CO2e *GigaJoules
Consumed

Nitrogen

20,943.6

87.2

N/A

Subtotal
Fertilizer

Subtotal

20,943.6

Total Scope 1**

87.2

N/A

1,037.1

14,909.4

Total Scope 1 and Scope 2 Energy
Consumed

33,123GigaJoules

Total Scope 1
and Scope 2 CO2e2,267Metric Tons of CO 2e

48%

SCOPE 2 EMISSIONS
Purchased
Electricity

Unit

Quantity

Metric Tons
of CO2

Metric Tonsof CH4

Metric Tons
of N2O

Metric Tons
of CO2e

GigaJoules
Consumed

KWh◊

5,059,405

1,225.70.1

0.01,230.3

18,213.9

5,059,405

1,225.7

0.1

0.0

Subtotal
Total Scope 2

1,230.3

18,213.9

1,230.3

18,213.9of Energy
Consumed
Supplied from
Grid Electricity ◊Scope 1 and Scope 2 calculations were performed using the following assumptions and/or with the following limitations: CO2e
= Carbon Dioxide Equivalent; total energy consumed excludes self-generated solar energy; gross Scope 1 emissions exclude
fugitive emissions.
1500
Purchased
Electricity† Assumes 10% blending with ethanol‡ Assumes 5% blending with biodiesel

1200* CO2e emissions from fertilizers were calculated using the EPA’s AgricultureState Greenhouse Gas Inventory and Projection Tools

900◊ Duckhorn has rooftop solar installed at certain locations. Monthly meteredelectricity data is assumed to net out this solar generation in the scope 2
calculation.

600**Gas and diesel consumption data was not available for three of our Estatevineyards. Propane consumption was not available at one of our Estatevineyards. Fuel consumption at these locations was estimated based on the
total acreage at these sites and reported fuel usage at other estate vineyards
with similar operations. These estimated emissions represent approximately
25% of total Scope 1 emissions.
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Diesel300
0Gasoline

NaturalGas
Dyed
Diesel

PropaneScope One Fuel Sources

LPG

Nitrogen

Scope Two
Fuel Sources

The Duckhorn Portfolio Responsibility and Sustainability Report21

ENERGY MANAGEMENT
Energy management processes at Duckhorn
are constantly improving through strategic,
data-driven changes to our standard operatingprocedures. As a wine producer and conscious
member of the global community, we arealways looking to increase energy efficiency
and reduce resource consumption while
simultaneously finding the intersection
between business efficiency and energy
conservation. Through internal assessmentsof our consumption and third-party audits,
we can better understand areas of potential
growth and advancement. In FY23, we madestrides in cataloging energy projects that were
simultaneously beneficial from an energy use
perspective and provided cost-savings to thecompany. Over the course of FY24, we plan
to further evaluate these strategic projects
and execute those projects that meet our
ROI expectations. In partnership with ourengineering team, we also have developed aheat map, which outlines potential energyfocused projects and the associated cost andresource savings.

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The Duckhorn Portfolio Responsibility and Sustainability Report22Some of the projects we have assessed and cataloged as potential opportunities include the following:

Energy Resource Conservation and Efficiency Projects

Projected Resource
Savings (per year)2Location

Monitoring of solar panels
Ensure relevant staff receive automated alerts on any system malfunctions and regular
reports on system performance compared to design capacity. Make sure cleaning andmaintenance guidelines are set up and followed.

30,951 kWh

Migration
Goldeneye
Geyserville
Waterfowl

Thermostat upgrade
Program energy efficient operations. In occupied hours, set the heating to turn on at 68
degrees, and air conditioning to turn on at 72 degrees. In unoccupied hours, set the heating
to turn on at 55 degrees, and air conditioning to turn on at 85 degrees.

40,000 kWh

Migration
Paraduxx
Duckhorn
Goldeneye (Tasting Roomand Winery)
Dowdell (Office)Waterfowl
Geyserville
Kosta Browne
CaleraLighting upgrade
Convert T-8 or T-5 lamps to TLED (Tubular LED) style lamps, or convert to LED style fixture
and use lighting controls such as dual technology occupancy sensors, bypass/delay timers,
photocells or time clocks

148,000 kWh

Migration
Waterfowl
GeyservilleElectricity rate changes
Assess rate changes after performing a rate analysis for each site

No resource savings, but
incremental cost savings ofapproximately $9,450 per year

Duckhorn
Goldeneye
Kosta Browne
Geyserville
Ridgeline Vineyard

Aerators upgrade
Properly control Wastewater Pond Aerators with DO Probes or timers (turn off during peak
hours)

18,000 kWh

Migration
Waterfowl
Geyserville

Reduce hot water temperature
Reduce the hot water temperature to 120-140 when higher temperatures of 160- 180 are notrequired for sanitation.

24,000 kWh

Migration
Waterfowl
Geyserville

Energy efficient aeration technology
Install a Microbubbles aeration system in the new Wastewater Pond instead of a moreenergy consuming Surface aeration system.

46,000 kWh

Paraduxx

VinFoil mixer energy efficiency trial
Completed trial in FY23, which was extremely successful for winemaking and energy
reduction. The average stabilization time was reduced from six weeks to eight days with the
new VinFoil mixers and Polarclad insulation.

Resource savings to be
Migration
determined. Time savings reduced
to eight days from six weeks.

Resource savings per year are estimated based on several inputs, including PG&E rate analysis, industry standards and program audits conducted at three properties and are therefore subject to change as we review
each project specifically for the site.

2

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The Duckhorn Portfolio Responsibility and Sustainability Report23Our energy footprint is heavily impacted by
the kind of energy we derive from the grid.
We are pleased that 96% of our total gridelectricity consumption at our California
wineries, vineyards and offices comes from
GHG-free resources including renewable,
nuclear and large hydroelectric power.3
The renewable nature of our grid electricity
has a materially positive impact on thecalculation of our Scope 2 emissions, which we
continue to find ways to to improve across ouroperating assets.4

Using solar panels
at our production
facilities, power over
30% of the energy
needed for our production
facilities annually
Invest in solar and/or other renewableenergy at our production facilities. Future
photovoltaic investments are currently
forecasted at a few facilities.

https://investor.pgecorp.com/news-events/press-releases/pressrelease-details/2023/PGE-Customers-Electricity-96-GreenhouseGas-Free-in-2022/default.aspx
4
California operations only
3

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The Duckhorn Portfolio Responsibility and Sustainability Report24

Waterfowl Winery

Our Waterfowl facility undergoes
an internal ISO audit conducted by
Waterfowl personnel, as well as anexternal ISO audit conducted by amember of our accreditation company.
While the audits themselves are notspecific to energy use, the resulting
information and best practices inform
KPI targets for energy use. Processes
and standard operating procedures are
updated accordingly.

350

Kilowatt hours (kWh) per ton crushed

About 42.8% of our winemaking is conducted
at our Waterfowl Winery, now our second
largest production facility, which is ISO
9001:2015-certified and aligned to ISO
14001. Attaining and maintaining ISOcertification and alignment requires asignificant investment made by the company
that standardizes management and data
capturing systems. Waterfowl's alignment to
the ISO 14001 framework helps us improve ourenvironmental performance through efficientuse of resources and reduction of waste.
As we look to the future at Waterfowl, we
continue to challenge ourselves to find ways
to be more efficient, such as adding a 500 kW
solar system to the facility. Waterfowl is morethan just a highly efficient and environmentallyconscious production facility, it is a key facility
in our portfolio, making possible the quality
production of our luxury wines. Over FY23,
the employee retention rate at Waterfowl was
100%, a testament to a management stylethat underlies the success in achieving the ISO
certifications, as well as the broader company
culture imbued in each facility.

300
250
200
150
100
50
0
FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY23 energy use per ton of grapes processed at Waterfowl is equal to 140.4 kWh per ton. In FY23,
we crushed approximately 4% less fruit than in FY22, 13,568.28 tons versus 14,101 tons, respectively.
Crushing grapes is one of the first steps in the production process to make wine. Even with thechanges in grape crushing volume, we always work to keep energy expenditures consistent year-toyear and decrease, when possible.

100%

Waterfowl Winery
employee retention rateover FY23

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The Duckhorn Portfolio Responsibility and Sustainability Report25

Geyserville Winery Acquisition

At the end of FY23, we acquired a new production facility, Geyserville winery, that is an exciting
opportunity that continues to streamline our fully-agnostic production model. This acquisition
supports our goals of producing sustainable wine, supporting our employees and communities andbuilding resiliency and business efficacy.
Producing sustainable wine:• Energy efficiency: The Geyserville winery facility is designed to significantly reduce theenvironmental impact of winemaking on-site and includes a solar panel array with anticipatedannual generation of 1 megawatt, capable of producing enough energy to power over 400 homes
annually.
• Conscious water use: The winery is set up for the re-use of 100% of water used during thewinemaking process, which can be used for vineyard irrigation of up to 35 million gallons
annually. Also, our wastewater ponds are lined to protect the groundwater table, keeping ourwater use system as closed as possible.
• Emissions reduction: A large contributor to the carbon footprint of production facilities isrefrigeration equipment. This winery is cooled by ammonia, the most environmentally friendly
and energy efficient refrigerant on the market, with negligible effects on ozone depletion andglobal warming.
Supporting our employees and communities: An acquisition of this type and size will provide anatural path for career growth for our employees. We also expect that new employees will be addedat the appropriate time to ensure ideal staffing at all of our production facilities.
Building resiliency and business efficacy: This acquisition reduces our reliance on third-party custom
processing, storage and bottling facilities, optimizing our production processes and affording us
greater visibility into our cost of goods in future years. The winery also supplies our business with aone-of-a-kind winery entitlement.

Other Winery Accolades
In 2010, our Goldeneye Winery earned the Leadership in Energy and Environmental Design(LEED) Gold Certification from the U.S. Green Building Council, making us one of the firstwineries in California to receive that designation. We continue to maintain this certification.

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The Duckhorn Portfolio Responsibility and Sustainability Report26

C A R B O N R E D U C T I O N I N I T I AT I V E S
Fleet Electrification Progress

We continue the transition of our indoor, higher-emitting forklift fleet to electric vehicles. In addition
to furthering our environmental goals, this often makes us eligible for carbon credits from e-Mission
Control’s Green Fleet Pioneer Program, a low carbon fuel standards program.5 A few of ourparticipating facilities have also invested in electric pallet jacks, which we also have been receiving
credit for through e-Mission Control's program.
For the reporting period of July 1, 2022 to June 30, 2023, our business replaced 64 metric tonsof CO2 with 154,940 kWh of clean energy6 through our partnership with e-Mission Control.7 Thiseffort reflects our commitment to supporting a zero-emission future and a focus on financiallyadvantageous investments. We are excited to continue our participation in this program andmeasure our progress in the coming years.

Solar Panel Progress at Migration Winery

Last year, we completed a new 400 kW solar electric power installation at Migration, which replaced
the winery’s existing solar array. Over FY23, using state-of-the-art, high-efficiency solar photovoltaic
panels, the system produced 541,142 kWh.8 Based on usage over the past year, this solar arrayprovides approximately 68% of Migration Winery’s main production electricity needs. By utilizing
this clean energy production at Migration, we are expected to offset approximately 383 metric tonsof carbon annually, equivalent to greenhouse gas emissions from 983,115 miles driven by an averagegasoline-powered passenger vehicle.9
Our successful solar system at Migration winery represents another critical step in our commitment
to sustainable winegrowing and winemaking. Looking forward, we are evaluating several additional
opportunities for solar installation at other facilities that would be both environmentally conscious
and improve business efficacy. In the upcoming fiscal year, we are scheduled to add solar at
Waterfowl and make system upgrades to the solar installation at our new Geyserville winery. Being
good environmental stewards and making financially sound choices are not mutually exclusive—infact, they often go hand-in-hand. These installations will also reduce strain on our local power grid,
which in turn, will help our community.

The equivalent of approximately

983,115 miles
driven by an average gasolinepowered passenger vehicle
was offset by clean energy
production.

https://e-missioncontrol.com/about-e-mission-control/green-fleet-pioneer/
Clean Energy comes from renewable, zero-emission sources that do not pollute the atmosphere when used.
7
While this Responsibility and Sustainability Report is based on information for FY23 (August 1, 2022 - July 31, 2023), some data from ourpartners exists outside this range.
8Months of August 2022-April 2023 were assumed based on modeled production provided by SolarCraft. Month May 2023 - July 2023 werebased on actual production.
5

6

9

Estimation made using the EPA's greenhouse gas equivalencies calculator.

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The Duckhorn Portfolio Responsibility and Sustainability Report27

Kosta Browne Shipping and Carbon Offset Project
In our inaugural 2021 Responsibility and Sustainability Report, we noted that nearly half of all
carbon emissions in the wine industry are associated with shipping and packaging.10 For this reason,
among many others, we committed to target offsetting the carbon emissions associated with ourunique transcontinental wine shipment. Last year, we sought a pilot program to offset the carbon
emissions caused by the freight of our Kosta Browne Burgundy Series and required transportationof wines aged in our cellar in the Burgundy region of France to our Kosta Browne cellar in
Sebastopol, California for the finishing and bottling of the wines.
For our second year of the program, Duckhorn has partnered with “Where the Buffalo Roam,”a carbon offset project for the purchase and protection of the Southern Plains Land Trust,in connection with Kosta Browne’s upcoming Burgundy Series offering.11 With a uniquetranscontinental luxury program of this nature, we felt it important to continue our work to support
causes that conserve agriculture and land and work to eliminate carbon emissions now and in the
future. Given our focus on land stewardship and sustainable development, we elected to offset the
carbon emissions resulting from the shipping and transportation of these wines from France toCalifornia, approximately 6.60 metric tons of carbon, as a continuation of our carbon offset projects.
Our freight forwarding partner, Hillebrand, calculated the total greenhouse gas emissions, expressed
as CO2 equivalents, for all shipments.12 This calculation includes emissions related to the extraction,
production, delivery and fuel usage related to the shipment.13 Our offset project is third-party
verified through the Climate Action Reserve and supports UN SDGs 6, 13 and 15. We were very
pleased with this inaugural carbon offset program and note the lessons learned from this program
may be more broadly applied to other business operations in future years.
Our farming operations may be impacted by the changing climate and the local impacts of fire anderosion. Ensuring that the Southern Plains Land Trust remains intact and responsibly managed is
an important investment in maintaining global carbon stocks, while also protecting a biodiversity
hotspot and wildlife refuge. Once the land is purchased, legal protections will ensure the land
will remain a wildlife refuge and, with the help of volunteers and nonprofit organizations, active
restoration of the land will take place. Benefits of restoration will include removal of nonnative
trees, restoration of water streams, conservation of native wildlife, restoration of riparian areas, andmuch more. While the impact of carbon emissions is global, with an estimated 15,000 metric tonsof carbon annually, this project also protects grasslands, one of the most endangered ecosystems
globally. We are proud to be able to support a project with far-reaching impacts on the earth, likethis one.

California Sustainable Winegrowing Alliance, Assessment on California Wine’s Carbon Footprint
https://www.cooleffect.org/project/where-the-buffalo-roam
12
CO2 equivalents are a metric measurement used to compare the emissions caused by various greenhouse gases on the basis of their global
warming potential. CO2 equivalents are calculated by converting the amounts of other gases to the amount of carbon dioxide with the same
global warming potential.
13
This calculation is performed according to EN 16258 using the Clean Cargo Working Group methodology for ocean legs.
1011

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The Duckhorn Portfolio Responsibility and Sustainability Report28

C O N S C I E N T I O U S WAT E R S T E WA R D S H I P
Water is a vital component of the winemaking process and our evolving methods reflect therecognition that California continues to experience episodic drought and extreme weather
conditions. Water stewardship is paramount to achieving longevity in the agricultural space, andrequires attention not only in the vineyards, but also in our production facilities, tasting rooms andcorporate offices. 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.

Strategic Advantages of Duckhorn’s Water Management Position

1

Relative to many other crops, grapes require less irrigated water2

Duckhorn has access to strong water entitlements in key areas; therefore,
access to water resources even in drought-like conditions, helps manage
the risk of crop failure due to increasing temperatures

3

The majority of our Estate and grower vineyards exist inadvantaged coastal regions, less directly impacted by low watertables and drying water basins

Water Reduction Practices in the Vineyard

Our vineyards utilize drip irrigation to deliver water more precisely to vine roots and we regularly
monitor weather to inform irrigation timing and quantity. This type of irrigation also reduces water
loss resulting from evaporation that is typical of overhead watering. We also reduce water used for
frost abatement by switching from low-efficiency sprinklers to frost fans. Finally, as a technique toreduce water usage on hot days, we plan to install water misters in some locations.
In our 2022 report, we announced that we were nearing final stages of a project at El
Veredicto Vineyard, part of our Migration winery, to “flip the faucet” to recycled water. We
are pleased to announce that this project was completed this past March, and El Veredicto
vineyard has been and will continue to be watered with recycled water. This vineyard uses justover 3.5 million gallons of water per year, and now is 100% supplied by Napa Recycled Water.

Paraduxx Winery

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The Duckhorn Portfolio Responsibility and Sustainability Report29Selected Current Water Reduction Practices
Reusing the base source of the cleaning chemicals and cycling them to next wash or
sanitization process
Capturing rinse waters as part of the next load of cleaning chemicals
Recycling hose rinsing water
Replacing boilers and other aging equipment with water efficient assets
Using high-pressure flow nozzles (note that high pressure means low flow)
Sweeping floors before wash downs to avoid the use of hoses to wash debris away
Using steam instead of water for sanitizing barrels and bottling lines and swelling barrels
Pushing wine lines with gas and pigs (small balls inserted into the transfer lines) instead of water
Replacing water-based chemical sanitization and rinsing with ozone
Implementing automated barrel washers for an efficient cleaning process
Utilizing Neutron Probes and Sap Flow sensors, which measure the vine’s need for water before
irrigating, to employ deficit irrigation strategies, offering precision irrigation by demand
Leverage aerial imaging to improve irrigation efficiency

Reduce water withdrawn per ton crushed at our
production facilities.
Continue to evaluate and assess current water capture and consumption at eachfacility with baseline dataset from FY23. Plan to determine critical investments andimplement critical path SOPs.

Baseline Water Use

Halfway through FY22, we began moreformalized implementation of water
monitoring at our wineries and production
facilities. Through the installation andmonitoring of water meters in the latter halfof FY22, we made great progress on our goal
to set up baseline data collection and identify
opportunities to maximize efficiency. We are
excited to present our FY23 water withdrawal
data as our baseline water consumption
metrics to perfect future data. While we stillwork to formalize our processes and protocols
with respect to measurement, we believe ourdata is in line with the industry averages forwater use at winery production facilities. With
FY23 data serving as the baseline information,
we plan to review our consumption levels todevelop a roadmap for setting and achieving
consumption targets in the future.
Total Water Withdrawn In FY23 10,745,074.50 gallons14
Moving forward, we will be reporting anormalized water-specific KPI, gallons ofwater withdrawn per ton of grapes crushed, inthe reporting period. This is a more accurate
measure of our operations and normalizes
against our potential growth and expansion.

1,453.92
Gallons of water used
per ton crushed in FY23

This number was calculated from our production facilities in California, and excludes our Washington operations.

14

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The Duckhorn Portfolio Responsibility and Sustainability Report30Understanding Water Stress
Understanding what is taking place beneath the surface of the ground in our vineyards
is key to understanding water intensity and stress of the vines. This geologic deep diveis instrumental in discovering our most at-risk areas for future climactic events such as
drought and wildfire. As part of our continued water risk assessment we used the WRI
Aqueduct Tool, a data platform used widely by companies to understand and respondto water risks, to determine areas that may be considered “water stressed.” The data
extracted from this assessment informs our vineyard team of areas where our operations
may face greater risk in the near- and long-term, and aids in future Estate and vineyard
acquisition planning. As a climate-conscious business, we are always looking for ways toexpand operations in a manner consistent with the changing climate to minimize futurerisk.
The FY23 water stress assessment concluded that of our 32 Estate vineyards, only
3% exist in regions of high or extremely high water stress.

Mendocino AVA
20GOLDENEYE

20

WATERFOWL
Napa Valley AVA

Sonoma County AVA

KOSTA BROWNE

DUCKHORN VINEYARDSPARADUXX

116

116

116

These results align with our strategic land acquisition practices, which take into accountlong-term climate conditions. Additionally, despite the already water-conscious nature of
growing grapes, we understand our reliance on water throughout the production process
to curate a finished bottle of wine. Only one of our tasting rooms exists in a location
deemed high or extremely high water stress. The water used in The Duckhorn Portfolio’s
vineyards and wineries is site-specific in origin and is available to us from a number ofdifferent sources, property rights and entitlements. We are thoughtful about how wesource our water and seek to do so in a manner that is sustainable in the long-term. We
use water from a variety of different sources and, when appropriate, reuse wastewater
when possible. Upgrading our wastewater systems allows for sustainable use of water
without withdrawing from the water table.

680

CALERA

Central Coast AVA

We are currently scheduled to upgrade our wastewater system at one of our
production facilities, which would allow the reuse of approximately 650,000
gallons per year, an exciting addition to our water stewardship programming. We
are also looking to upgrade the pond aeration system, which we anticipate would
provide energy savings as well as to support the reuse of water.
POSTMARK

522

2
405

2
2

16

18

195

Columbia Valley AVA
26

243

12

395

Baseline Water Risk
Low
(0-1)

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LowMedium(1-2)

SocialCANVASBACK

MediumHigh(2-3)

Governance

High
(3-4)

Extremely
High
(4-5)

The Duckhorn Portfolio Responsibility and Sustainability Report31

R E S P O N S I B L E PA C K A G I N G A N D WA S T E
We continue to view packaging and transportation as an area of focus for potential improvement
when it comes to reducing our emissions. Today, we continue to discover opportunities tostreamline and improve our packaging and transportation-related emissions. We strive to decrease
our footprint by increasing the lifespan of packaging used in shipping while simultaneously meetingthe aesthetic and physical delivery standards our customers expect of luxury wine delivered to theirhomes. Our approaches to solving these challenges, as outlined in detail below, generally focus on
thinking in new ways about how we can delight our customers, safely and compliantly deliver our
luxury wines and achieve a greater level of sustainability.

Sustainable Product and Circularity

We seek to reduce our landfill footprint by minimizing our use of climate negative packaging andensuring that, whenever possible, our materials can be repurposed or returned to the earth. OverFY23, we continue to report against our high baseline values for the circularity of our packaging,with 100% of the cork, paper and cardboard packaging used in our Wholesale and Direct toConsumer distribution made from renewable materials.15 Much of the glass used to form ourbottles is made from post consumer recycled glass, after which the bottles can be recycled again,
closing the supply chain loop. Then, when the shipment is delivered, 100% of our glass, paper, tin,
cardboard, ice pack and padding can be recycled or composted. We are currently developing ways
to further capture increased materials efficiencies through alignment with high quality packaging
vendors, which have led to noticeable decreases in wasted materials during the production process.
Additionally, we occasionally accept out-of-specification packaging material, if and only if, themalformation does not affect wine quality, in an effort to avoid wasting materials. We imagine afuture where products used in the packaging and ultimate delivery of our wines can be repurposedor recycled to decrease our environmental footprint, working towards a more circular supply chain,such that materials can be returned to the earth with a net neutral effect.

Decrease our product footprint in our supply chain
In concert with our supply chain team, we have plans in place to eliminate
unnecessary packaging in the back-and-forth vendor process. We will also
look to increase product circularity through innovative packaging.

Renewable materials are defined as resources that can be naturally replaced through natural or ecological cycles.

15

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The Duckhorn Portfolio Responsibility and Sustainability Report32

Glass Bottles
We work to minimize our carbon footprint by sourcing regional materials and choosing to partnerwith North American suppliers whenever possible, which provides greater assurance of meeting
our supply needs and delivery expectations and simultaneously decreasing GHG emissions causedby air and sea freight. This year, we renewed our contract with our glass supplier based in Mexico,
which furthers our progress toward our goal of sourcing 100% of glass from North America,
decreasing emissions caused by transporting the supplied glass bottles to our facilities and helping
to ensure a more reliable supply chain.16 In our 2022 report, we committed to a near-term goal totarget light-weighting 49% of our bottle molds.17 Beginning in early FY24, we will start bottling manyof our wines in the new, light-weight bottle mold. This mold will serve approximately 50% of ouroverall production, which helps us achieve our goal.

The transition of about half of our production to the lightweight mold supports:
1. Efficient use of resources, with a reduction of 30 grams per bottle and annual
demand for Duckhorn for this mold at around 1.2 million cases or 14.4 million bottles this decreases the number of total machine days needed to produce the bottles andeliminates 432 metrics tons of glass annually.
2. Increased business efficiencies of our suppliers, calculated to increase output per day
from 11,000 to 14,500 cases, around 30% more productive.
3. Direct decrease in transportation emissions. When we consider the movement oflighter product from our supplier warehouse to northern California, the 1.2 million
cases transported would represent an annual reduction of 42.7 metric tons of CO2.18

100%
Cork, Paper & Cardboard madefrom renewable materials

100%
Glass, Tin, Cardboard, Ice Packs& Padding can be recycled orcompostedContinue to decrease emissions caused by our
supply chain
We continue to achieve a significant decrease in emissions caused by transportationand shipping through our lightweight bottle initiatives, which are currently inprogress. We will continue to evaluate opportunities to further lightweight ourbottles to decrease carbon emissions.

Note, a few odd size (3L, 375ml, etc.) glass molds may be sourced from France or China if we are unable to obtain it from our North American suppliers; they account for a very small percentage of
our overall production.
Target based on the current 12-month forecast.
18
Estimated using basic greenhouse gas calculation (distance x weight x emissions factor)
16

17

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The Duckhorn Portfolio Responsibility and Sustainability Report33

DTC Packaging
We continue to use Enviro Ice, anenvironmentally friendly nitrogen-based
liquid gel that can replace silica-based gel
packs, to keep wine bottles cool duringtransit in warmer months. Enviro Ice packs
can be refrozen or cut open and used tonourish plants because they are Nitrogenbased fertilizers. This packaging supports
our goal of having a responsible packaging
and waste cycle that keeps our supply chain,
and its many dynamic pieces, as circular as
possible. We are continuously evaluating newenvironmentally friendly shipping materials
as they come to market. It is crucial that the
inputs used in the production and shipping ofwine are chosen with care, paying attention to
the nature of the product being transported.
These materials must support a fragile, yetheavy, perishable good that is sensitive totemperature fluctuations.

Waste Management

We employ waste management strategies atall of our facilities that attempt to reduce theimpact we have on landfills. Our offices recycle
and use reusable materials whenever possible.
A significant portion of our waste is derived
through the winemaking process. For thatreason, to mitigate suboptimal managementof this organic waste, we continue to compost
our green waste, whenever possible, which
includes grape skins, pulp and seeds. Overthe course of FY23, we spread approximately
64,600 tons of organic-matter compost in our
Estate vineyards, one of the most important
things you can put back into the vineyard
to replenish the humis, the critical top layerof soil. Replenishing the humis ensures
maintenance of microbial biodiversity under
the soil as well as generally in our vineyards
and areas of operation as a whole.

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The Duckhorn Portfolio Responsibility and Sustainability Report34

B I O D I V E R S I T Y A N D L A N D S T E WA R D S H I P
Sustainability in the Vineyard
Maintaining the health of our vineyards and promoting the longevity and quality of thevines is integral to the success of our business and the quality of our wines. We operate
as a conscientious wine producer, adjusting and adapting to the changing climate withthe objective of crafting luxury wine and leaving fertile land behind for future generations.
Operating with this philosophy, we work synergistically with the climate, our trusted
partners and dynamic weather patterns to produce the highest quality luxury wine thatspeaks with a sense of place.
Viticulture is impacted by climate change and increased incidence of natural disasters.
While we cannot control the weather, we continue to implement innovative, adaptable
practices to mitigate its adverse impacts. These include:• Implementing drought-tolerant rootstocks and grape varietals more conducive to ourwarmer climate.
• Furthering our robust R&D program to remain at the cutting edge of climate-related
agricultural development through regenerative farming trials and replenishing soil
microbiota.
• Utilizing the practices set forth by the permaculture framework, an integrated approachto designing agroecological systems that support a fully sustainable system.
• Utilizing cover-cropping to support nutrient-dense soil regeneration.
• Using deficit irrigation and managing water usage through increased data points.
• Altering vineyard row direction when redeveloping vineyards to account for heatdifferential and maximize shading.
• Using an ad hoc Climate Change Consortium, building off learning opportunities like thethe inaugural symposium in FY22, to bring together key players at Duckhorn to explore
the effects of climate change on our business and to create action plans to address risks
and opportunities.

Increase biodiversity in the soils of ourEstate properties
We are working to maintain all of our sustainable certifications of our estatevineyards and seek out new certifications, as appropriate.

WelcomeEnvironmental

SocialGovernanceIntegrated Pest Management:
A Case Study from "Vineyard to Table"
Agriculture is at the core of our business. Accordingly, wemust remain at the forefront of best practices in farming
to protect not only our vines but also the environments
in which we operate. One way we are working tomaintain a biodiverse landscape is through Integrated
Pest Management ("IPM"). IPM is an ecocsystem-based
strategy that focuses on the long-term prevention ofpests and/or their damage through techniques likebiological control, habitat manipulation, modification ofcultural practices and use of resistant varieties. IPM truly
embodies "boots on the ground" farming techniques,
which requires dynamic and diligent participation of
the farmer. We understand the detrimental impact ofchemical use in the vineyards, which is why we employ
the IPM program at 100% of our estate vineyards, upheld
through weekly scouting and monitoring. Our goal with
the IPM program is to drastically decrease our chemical
footprint. When we face an issue in the vineyard, we
evaluate several solutions and look for options thatmaximize results and minimize our impact on theenvironment. Before an issue can be treated, it must
surpass the economic threshold for that pest. Generally,
Duckhorn tends to have higher economic thresholds, tominimize required chemical involvement.
An example of IPM in action can be seen with vineyard
mites. According to the IPM process, one would analyze
mites in a grid of a specific vineyard. This might entail
evaluating a leaf every five vines to record how manymites you're seeing per leaf. If, for example, you see
10-20 mites per leaf in your control area, with damage
up to the mid canopy, that would be considered atreatable scenario based on thresholds for mites. Whilea treatment for mites could involve the use of chemicals,
other solutions that we have used in the past include therelease of a beneficial insect, like the Californicus mite.
While this assessment takes time, it is integral to IPM. The
IPM process helps our farming team evaluate if a vineyard
actually requires treatment, rather than spraying before
a problem is detected, which would be the easier, morestreamlined process, but can cause undue harm to theland by using chemicals without proper cause. Our IPM
programs have been woven into our farming operations
for decades, and contribute to our sustainable productionof luxury wine.

The Duckhorn Portfolio Responsibility and Sustainability Report35Vineyard Certifications

Our Certified Vineyards

The vineyard certifications we earn for our wineries andvineyards offer tangible evidence of our land stewardshipand biodiversity objectives and progress as they recognize
leaders in those areas. As a continuation from last year, weare excited to report that all of our North Coast vineyards
remain certified by the Fish Friendly Farming® (“FFF”)
program, which promotes efficient and cost-effective
Beneficial Management Practices that help restore natural
fish and wildlife habitats. The certification process isrigorous and requires end-to-end involvement from thewinery and the FFF representatives, as well as a final signoff by a National Oceanic Atmospheric Administration("NOAA") representative. The FFF certification requires
routine maintenance and checks, which require proof
that relevant action items – assigned at the initial walkthrough – have been addressed. Programs like FFF support
the ecosystems in which we operate, a crucial part of thecultivation process of any high-quality, sustainable crop.
Best practices from this program have also been adopted
at our other vineyards that are not yet certified.
As we expand our production and vineyard capabilities,
we always look to find ways to make our systems more
efficient for our operations and less impactful on ourenvironment. Last year, we announced that the newest
vineyard for our Postmark winery brand passed theSustainability in Practice (“SIP”) certification process.19
We believe whole-heartedly in the values set forth by the
SIP program and believe in maximizing opportunities tocarry over best practices to other properties wheneverpossible. Over FY23, we began the process to achieve theSustainable WA certification for our Longwinds Vineyardin Walla Walla, Washington.20 Sustainable WA signifies a
commitment to quality fruit, environmental stewardship,and healthy communities and is the first certification
program of its kind, curated specifically for Washington
vineyards. As with many other certification programs that
Duckhorn participates in, the Sustainable WA methodology
covers the sustainable pillars of environmentally sound,socially equitable and economically viable farming, much
like the approach Duckhorn takes with our overarchingsustainability program. The certification is science-based
and built to continually improve, with approximately 83
requirements built into the standard. We will continue thecertification process through FY24 and are excited about
joining a community of sustainably-focused winegrowers
in Washington.
WelcomeEnvironmental

SocialGovernanceNapa Valley

Sonoma County

Anderson Valley

Cork Tree Vineyard

Brownell Vineyard

Cerise Vineyard*

El Veredicto Vineyard

Keefer Vineyard

Confluence Vineyard

Marlee’s Vineyard

Ridgeline Vineyard

Gowan Creek Vineyard

Monitor Ledge
Vineyard

Running Creek
Vineyard

The Narrows Vineyard

Patzimaro Vineyard

Bodega Vineyard*

Rector Creek Vineyard
Stout Vineyard
Three Palms Vineyard
Wolfe Vineyard
San Benito County
Jensen Vineyard
Selleck Vineyard
Ryan vineyard
Mills Vineyard
deVilliers Vineyard
Reed Vineyard
Paso Robles
Postmark Vineyard

Sonoma County
Gap’s Crown Vineyard
Bodega Vineyard
Red Mountain
Longwinds Vineyard**Finalization in progress
19
20

https://www.sipcertified.org/
https://sustainablewa.com/

The Duckhorn Portfolio Responsibility and Sustainability Report36

G R O W E R PA RT N E R S
Over FY23, our Estate vineyards produced approximately 10% of the grapes required to meet ouraggregate production needs, and the remainder of our total production was sourced from thirdparty growers and, to a lesser extent, the bulk wine market. Our confidence in the quality of ourgrapes comes from longstanding relationships with our growers. They have established themselves
as responsible agricultural producers, making them reliable and trustworthy partners in producing
our luxury wines.
As a continuation of the process we developed for our 2022 report, we are proud to disclose
our suppliers had zero major or minor nonconformances with social and environmental audit
standards and/or with their internally developed codes of conduct.
Accordingly, they also had zero corrective actions associated with major or minor nonconformances. The oversight structure in place to manage cooperative farming contracts includes
provisions to ensure the quality of the grapes over time and lessen the reliance on chemical andsynthetic inputs. These arrangements can cover activities like overcropping and excessive irrigation,
while also setting expectations for incorporating the best practices used at our Estate vineyards.
A fundamental component of biodiversity and land management involves the engagement of ourgrower partners to adhere, as closely as possible, to our own environmental standards, certifying
with third-party, independently verified sustainability organizations whenever possible. It is ourhope to continue to expand our scope of independently verified sustainability certifications, as theyalign with business interests and efficiencies. Last year, we chartered an audit of our third-party
growers, working to better understand the certifications already in place, and where there may
be opportunities to align. Over FY23, we continued to collect information from our growers andencouraged them to report information about their environmental certifications as part of our work
towards our biodiversity goal. We hope to finalize this information collection in the upcoming year,
and evaluate the results to see what an environmental integration plan might look like in the future.
We believe that continuing our work to further the environmental certifications held beyond ourowned and leased vineyards will foster even stronger relationships with our growers and provide
confidence and assurance for our consumers that they are receiving the best possible product.
Our work to establish a diversified and dynamic supply chain that is resilient to future climate
scenarios will best position us to tackle extreme changes in the future. As a continuation of the work
we started in 2022 to really understand our water risk, we once again conducted an internal analysis
of our more than 300 grower partner vineyards to better understand areas of potential risk or gaps
in our supply chain.
This analysis revealed that only 18% of our grape grower vineyards exist in regions with highor extremely high baseline water stress.21
While we are confident in the work we do to ensure longevity in our supply chain, we will continue
to assess the exposure our grower partners to baseline water risk as the climate continues tochange.

21

According to WRI Aqueduct Tool

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The Duckhorn Portfolio Responsibility and Sustainability Report

37

SOCIAL

The passion and diversity of ourtalented employees underpin our
success as a luxury wine company.
We cultivate an environment where
all employees are treated fairly andwith dignity, and where each teammember can experience a rewarding,challenging and productive career.
Our company culture and dedication
to the deeply held values establishedas part of our “flock” mentality
ensure the employee-centric businessfounded in 1976 remains today. Sip
responsibly and sustainably, with
Duckhorn's ESG vision in every glass,thanks to our dedicated Duckhorn
team.

IN THIS SECTION:TALENT MANAGEMENTPROFESSIONAL DEVELOPMENT
DIVERSITY, EQUITY AND INCLUSIONHUMAN RIGHTS AND LABOR PRACTICESHEALTH AND SAFETY
PROMOTING RESPONSIBLE ENJOYMENTCONTRIBUTING TO OUR COMMUNITIESQUALITY MANAGEMENT

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The Duckhorn Portfolio Responsibility and Sustainability Report38

OUR PEOPLE
Our workforce is comprised of dedicated, passionate employees who bring insights andknowledge to Duckhorn through a wide variety of professional experiences and backgrounds.
Our company has evolved as we have grown, but the culture has remained rooted in the sharedvalues central to the vision of our founders who focused on respect, hard work, collaboration,
innovation and a commitment to our mission. At the end of FY23, we had 463 full-time
employees, 21 part-time employees and 59 seasonal employees.

TA L E N T M A N A G E M E N T
We are dedicated to building and maintaining a corporate workforce founded on a culture ofequality, respect and integrity. All our teams, headed by five Executive Vice Presidents, specialize
in work necessary to the success of our business, from viticulture to digital marketing, and fromaccounts payable to regulatory compliance. We take pride in working together to achieve ourbest results and maintain collegiality through it all, as it is essential that all employees, no matter
their department, tenure or status are treated with respect and professionalism.

Wine, Wisdom and Well-being

Our comprehensive benefit plans, recognition programs and employee support systems seek toposition all our employees for success in their careers and fulfillment in healthy and balanced
lives.

Benefits

Providing a competitive benefits package to our employees remains a key areaof focus at Duckhorn. We believe that health care is one of the most importantcomponents of our benefits package. We are cognizant of the cost of health carein the United States, and Duckhorn alleviates this and other financial pressuresexperienced by our employees through tiered benefit plan cost sharing. Under this approach,the Company pays a higher percentage of the cost of health care and certain other benefits for
employees with lower base salaries so that high quality benefits are affordable and retention andproductivity remain high.
We are proud to invest for the future of all part-time and full-time employees
through our uniquely-structured 401(k) plan. Building upon a foundation of carefor our fellow employees, Duckhorn contributes an amount equal to 10% of an
employee’s compensation as a tax-deferred employer contribution to their 401(k)account, irrespective of whether the employee contributes to their retirementsavings. We believe this contribution by the Company is an attractive benefit to prospective
employees and increases retention of current employees. This is one of the reasons we believe
we are an employer of choice in the markets in which we conduct business, and it furthers ourcommitment to our employees in all seasons of their lives.

WelcomeEnvironmental

SocialGovernanceLeading by example and rising through the ranks
Last year we profiled Zach Rasmuson, Executive
Vice President, COO and an employee for over
19 years, another excellent example of Duckhorn
values embodied. This year, we wanted to takethe opportunity to highlight Pete Przybylinski our
Executive Vice President, Chief Sales Officer (“CSO”)
and an employee for over 28 years. Pete has served
as our CSO since 2010, after serving in a numberof sales roles of increasing responsibility in theorganization since joining the Company in 1995.
Pete’s story and devoted tenure at the company set
the bar for what it means to be part of the Duckhorn
team. The leadership he demonstrates speaks to his
passion and commitment. Pete’s story is an excellent
example of the investments Duckhorn continues
to make in its employees. Through the support ofthe company and its leadership, Pete was able risethrough the ranks. He continues to be an exemplary
leader to all employees and makes possible theenjoyment of our wines across all corners of theworld.

The Duckhorn Portfolio Responsibility and Sustainability Report39Our suite of benefits for participating employees includes the following:
Employee Support

Physical and Mental Health• Medical, Dental and Vision Coverage• Flexible Spending Accounts• Health Savings Accounts• Short- and Long-Term Disability• Hospital & Accidental Voluntary Insurance

Financial• Participation in the cash-based annual bonus program• Supplemental Voluntary Life Insurance• 10% Employer 401(k) contribution• Discounted stock sold under an Employee Stock
Purchase Plan (“ESPP”)

Personal and Family Well-being• Employee Assistance Program (“EAP”)• Paid parental leave• Paid Time Off, minimum of 20 days per year
• Dependent Care Flexible Spending Account• Volunteer Time Off (“VTO”)

Additional support• Tuition reimbursement ($3,500/FY)• Commuter benefits program ($3 per day for employees
who carpool to work)

Extra Perks!
• Annual footwear reimbursement• Annual employee wine allotments and ongoing
discounts and complimentary tasting visits• Merchandise discounts• Employee Intranet
WelcomeEnvironmental

SocialGovernance

Our People team is dedicatedto addressing the changing
needs of our employees. For
example, the Employee Assistance
Program "EAP", launched in 2021
and available to all Duckhorn
employees and their families, including those
not eligible for most medical benefits, is 100%
employer-sponsored and offers a wide rangeof free support services and resources toachieve optimal mental well-being. Some of
the resources provided by the EAP include
counseling, crisis consultation, dependent careand daily living resources, legal consultation,
financial consultation as well as general healthyliving resources. This continues to be an excellent
resource that is used by employees with about a
4% utilization rate observed over FY23.
We continue to adapt to the changing macro
environment in an effort to stay competitive inthe market, so, in select positions in early 2022,
we introduced a hybrid employee classification toenhance flexibility, productivity, and mental wellbeing. These employees work in the office a set
number of days per week and remotely on otherdays. This hybrid work model supports flexibility
and promotes active collaboration on in-officedays.
Over FY23, we are excited to have launched
an Employee Intranet, "The Nest," a significant
milestone in our ongoing efforts to strengthencommunication and foster a collaborative work
environment. With over 500 employees basedin over 30 locations, it was an integral next stepto create a centralized repository of information,
making it easy to find up to date company news
and information such as policies, proceduresand people resources. Creating an engaging
and productive culture is part of our internal
communication strategy, and "The Nest" helps
ensure everyone is informed and has accessto company resources. With the new launch,
we are actively exploring ways to enhance andcontinually improve the platform.

The Duckhorn Portfolio Responsibility and Sustainability Report40Milestone Recognition

Tenure is an extremely valuable metricat Duckhorn. As of the end of FY23,
approximately 30% of employees have beenat the company for five years or more, up
3% since last year. These tenured employees
receive a large format bottle of wine, signed
by each member of the management
team, presented in a wooden box on theirfifth anniversary, and an etched bottle ofwine on their tenth anniversary. Both ofthese milestones are typically recognizedwith monetary awards as well. In FY22, we
implemented a new milestone recognition
program, where employees with 25 yearsof service have an opportunity to name avineyard block at one of our Estate vineyards,
which is memorialized with a distinct sign
bearing the name selected. We are proud
to say that a few employees this year got tocommemorate their twenty-fifth anniversary
by naming a vineyard block. We enjoy
recognizing and rewarding employees for theircommitment to Duckhorn and believe that ouremployee tenure is not only an indication of astrong business, but a critical outcome of ourwork to strengthen our small company culture.

Belinda Weber, based at our St. Helena
headquarters, celebrates 25 years working
for The Duckhorn Portfolio. She is our Vice
President, Marketing, and has devoted a quarter
century to building The Duckhorn Portfolio
into what it is today, and we are incredibly
grateful for her contributions. For this milestone,
Duckhorn gave her the honor of choosing thename for one of our Estate Vineyard blocks.
She chose Rector Creek Vineyard Block 6A and
named it after our former Paraduxx winery dog,
Cooper, who loved to explore the vine rows
with her.

Migration Winery

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The Duckhorn Portfolio Responsibility and Sustainability Report41

PR OFESSIONAL DE VELOPMENT
We are committed to supporting our employees as they grow in their professional careers, bothas individuals and as key contributors to Duckhorn’s mission. In tailoring the employee experience
individually, we seek to empower every Duckhorn employee to take control of their career
growth and realize their full potential with our training, mentorship and professional development
opportunities. Our investment in professional development not only incentivizes our workforce, but
positively impacts our ability to recruit and retain the best employees.
The annual Professional Development Review (“PDR”) framework allows employees, in conjunction
with their managers, to examine their job performance, explore areas for knowledge expansion,
career advancement objectives and assess overall satisfaction. The process occurs annually,
beginning each spring with managers and employees filling out an online review form. A report
is subsequently generated, which is reviewed by employees with their manager at an in-person
or virtual meeting, and in some cases, with executives to ensure consistency throughout theirdepartment. Managers reconnect with employees intermittently in the subsequent months to ensure
progress is being made toward these goals. We use the aggregated data captured from the PDR
process to measure trends and establish future focus areas.
We continue to welcome new employees through our Navigator program, launched in 2020, whichpairs new employees with current employees. In FY23, we welcomed 28 new hires through thisorientation program, bringing the total to 136 new hires since the program’s launch. Nearing its
third year of implementation, the Navigator program has grown to be to be a central part of new
employee orientation and includes incentives for participation.

Talent Attraction and Recruitment

In addition to supporting new employees as they join our teams, we also work to ensure our
employee population reflects the values and communities in which we live and work through ourrecruitment efforts. To help find candidates who will contribute to the Duckhorn culture and speed
our recruitment processes, we established an employee referral program. The program rewards
employees who refer new hires and who are both employed at the Company six months after the
new employee joins the Company. In FY23, 17 new hires were internally referred, including full-time,
part-time and seasonal employees. As of July 31, 2023, 10 have already surpassed their six-monthanniversary.

Duckhorn Vineyards

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The Duckhorn Portfolio Responsibility and Sustainability Report42Employee Training

Once onboarded at Duckhorn, we cultivate
a supportive and safe working environment
where our employees can succeed
professionally and thrive personally. Training isa priority at the company, and each employee
is trained across general requirements likecybersecurity, health and safety and job
specific elements. Depending on their role orposition, an employee receives training on anumber of topics, which may include:• Anti-harassment• Diversity, Equity & Inclusion (“DE&I”) 22• Recruitment• Safety
Duckhorn also offers a variety job-specific,
professional development training, including:• Wine Industry Sales Education• Responsible beverage service• Managerial leadership
We are currently working on incorporating
new software to be implemented in the
coming year to efficiently manage thesetraining courses and track hours spent onthem.

Tuition Reimbursement & Education

To foster the development of employees
through continuing education and jobrelated skill development opportunities,
Duckhorn supports a number of educational
opportunities and offsets the cost of many
materials and experiences. One of thespecific education opportunities is theTuition Reimbursement program. In 2021, we
increased the amount allotted for this benefit
to $3,500 per year, to help cover the costs oftuition, class fees and books. Since its launch,
the company has spent over $116,262 on
tuition reimbursement.23 In FY23, 9 employees
took advantage of this benefit, which not only
represents an investment in our employees'
career growth but supports the growth of thecompany and promotes longevity in tenure.
Many have used the reimbursement to help
pay for the Wine and Spirit Education Trust
certification to gain a deeper understanding
and appreciation of wine or to offset the costof classes and books. We continue to view
this program as an investment in our mostimportant assets - our people and culture.

DEI Trainings are done on a ad hoc basis, and therefore may not occur every fiscal year.
23
This figure excludes other spend on educational opportunities for employees such as attending seminars, specific trainings, meetings,
personal coaching and subscriptions to educational materials as part of the employee’s core job function.
22

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The Duckhorn Portfolio Responsibility and Sustainability Report43

D I V E R S I T Y, E Q U I T Y A N D I N C L U S I O NEngaging Employees in DE&I

In our inaugural Responsibility and Sustainability report, we touched on the launch of our Diversity
and Inclusion initiative. In FY22, we expanded the program to include “Equity,” which we believe
is a critical consideration that helps us acknowledge that our peers face different barriers andadvantages, making the difference when working to achieve an equitable workplace.. The goal of
our DE&I program is to engage with our employee population through trainings, focus groups andone-on-one conversations to ensure everyone is working in an environment that is safe, equitable
and where one feels valued and heard. We achieve this by providing an avenue for all employees toshare experiences, recognize one another and learn to be more thoughtful in our interactions.
Our DE&I efforts focus on building a foundation of respect and integrity among colleagues andrecognizing the potential biases and prejudices that may exist in the workplace. Our inaugural DE&I
curriculum involved a three-module virtual presentation and set of materials, offered in both English
and Spanish, that addressed the topics of Inclusion Literacy, Unconscious Bias and Identificationof Microaggressions and Actions. All of our employees were encouraged to participate in the
program and our inaugural year saw an average completion rate of 92% across all three modules.
In our second year, we presented a module on the nexus between DE&I and returning to work in
a post-pandemic environment, working to understand how the felt effects of the pandemic were
not distributed evenly across our employee population. This module touched on the intersection
between mental health and DE&I in the workplace.
Based on feedback from our inaugural DE&I trainings, we wanted to continue to tailor our future
trainings to the expectations and needs of our employees. Accordingly, over FY23, a crossfunctional team from the legal and people teams (the “diversity ambassadors”) conducted
instructive forums on the topics of DE&I with a cross functional focus group comprised ofindividuals across our employee base. The goal of this forum was to help decipher the DE&I topics
most important to the employees. This forum allowed employees to reflect on their experiences andcultural practices as they relate to inclusion and equity, and help brainstorm ways for the company
to better support our employee groups. Their participation and dialogue were critical to ensure
our DE&I programming continues to be derived from a bottom-up approach and is unique to thecompany. After a productive discussion, the diversity ambassadors began to craft an action planand proposed a three-pronged process, with action to be taken over the next few years.

STEP

1

Approve draft of DE&I pledge for adoption by the company

STEP

Development of DE&I Committee, based on proposal set forth by thediversity ambassadors

2

STEP

3

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The Duckhorn Portfolio Responsibility and Sustainability Report44Female Representation In Leadership

Gender diversity in the upper levels of management is a part of our story of which we are mostproud; it is a testament to the longstanding value we place on every employee regardless of gender.
With our robust representation of women in leadership, we hope to be a leader in the industry, while
simultaneously inspiring our employees to achieve their full potential. In FY23, we reported that
52% of leadership positions were held by female employees. While this metric has fluctuated over
the years, we consistently work to maintain gender parity in leadership. As the company grows andadjusts to occasional organizational restructuring, we may see some changes year-to-year, but will
always work to keep numbers in line with our expectations and goals.

51%

Direct Employee
Gender Diversity

100
1

49%

Male
Female

80

4

67%

11

22

37

90

3

97

Executive

Total

2

10

60

3

2%
2%
1%
0.4%

Direct Employee
Ethnic Diversity
Breakdown

7

40

20
28%

White
Hispanic/Latino
Asian
Black African American
Two or more races (non-Hispanic or Latino)
Native Hawaiian or Pacific Islander

02AssistantManager
Male

15

26

39

1

4

ManagerSupervisor

Director

SeniorDirector

Vice
President

Senior Vice
President

FemaleMaintain and enhance gender representation in managerial
positions at the Company
We have consistently had over half of our leadership positions held by women overthe past three years. We plan to continue with our successful hiring strategy tomaintain or increase representation in future years.

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The Duckhorn Portfolio Responsibility and Sustainability Report45

HUM AN RIGHTS AND L ABOR PR ACTICES
Collective Bargaining

The Duckhorn Portfolio had no collective
bargaining agreements in FY23.

Human Rights

Duckhorn is committed to protecting humanrights and preventing modern slavery inevery form, including forced labor and humantrafficking, across our entire operational
footprint. We recognize our corporate
responsibility to uphold basic human rights
and ensure no person is complicit in humanrights abuses. Our organization is aligned with
the UN Declaration of Human Rights to showthat respecting human rights is fundamental
to the way we do business and is part of ourcore values. From our vineyard workers who
spend hours in the sun ensuring our vineyards
produce the best fruit possible, to our sales
team in the markets interacting with an arrayof consumers and buyers, we are committed
to conducting ourselves in accordance withthe highest standards of business conduct
and ethics, and applicable laws, regulations,rules and standards. We work to ensure ourhuman rights expectations are met acrossour supply chain through supplier and vendor
questionnaires, where human rights issues areincorporated.

Labor and Migration Practices

Due to our seasonal work obligations
surrounding the harvest of our grapes every
fall, we use a combination of hired laborand subcontracted labor to support thepeak harvest periods. Despite the various
types of seasonal workforce engagements
and employment status, at Duckhorn weremain 100% dedicated to providing awork environment in which each employee
is treated with dignity and respect. Ourleadership in the vineyards is responsible formaintaining all elements of ethics, integrity
and human rights and is highly attuned toresponding to any potential warning signs of
distress. In this manner, we protect our entire
workforce, regardless of position.

Anti-Harassment Policy

We strive to provide a work environment
free from harassment, discrimination andretaliation. This policy is designed to prevent
any form of hostile or offensive act, be it
physical, verbal or written. In addition to our
DE&I trainings and forums, where employees
learn about supporting and respecting
one another, every employee is required tocomplete 1-2 hours of anti-harassment training
every two years to cultivate a workplace
where employees are engaged and feelempowered to share their opinions, while
dignity and respect guide their connections.
Duckhorn enforces a strict zero-retaliation
policy for employees that report concerns.
We also retain an employee hotline, which canbe used by anyone in the company to reportconcerns anonymously or on a self-identified
basis.

Enact policies consistent with our business worldview
In the near term, we plan to formalize our development of aspirational and observed
policies at the Company.

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The Duckhorn Portfolio Responsibility and Sustainability Report46

H E A LT H A N D S A F E T Y
Ensuring the safety and well-being of our employees is fundamental to our operations. We work
to identify proactive hazard controls to minimize incidents in the workplace, while simultaneously
ensuring business efficiencies are maintained. We view our commitment to safety as an investment
in our employees - and our business - for the long-term. Over FY23, we have worked to expand ourhealth and safety programming.

Safety Procedures Implemented in FY23
• Onboarded new comprehensive safety management system platform, HSI, for efficiency
in managing the following: safety incidents, Waterfowl’s ISO quality management,chemical management, and the introduction of a learning management system (LMS)
all in one place allows for ease in OSHA annual injury reporting, tracking of metrics andcompletion of corrective actions• Continued emphasis to Safety Champions to record and report near-miss reporting toprevent more serious incidents from occurring.
• Continued monthly meeting of monthly Safety Champion with review of incident-related
KPIs at each meeting, along with a discussion of measures teams can use to prevent asimilar incident at their location.
• We have added new Safety Champion representatives from our Central Coast and
Viticulture teams.
• Distribution of safety alerts through periodic newsletters to highlight safety incidents,
excessive heat warnings and evacuation drill reminders.
• Development of in-house safety trainings such as Golf Cart Safety and Driving inVineyards training.
• Initial development of a dedicated Safety page within Duckhorn's new Employee Intranet,to allow for an easy source to find relevant checklists, policies and programs.

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Safety Culture

Safety at Duckhorn is a source of pride anda product of vigilance. We work to ensure
safety is achieved at all levels of the business,ensuring the well-being of each and every
employee regardless of their position in
the company and creating a safe space forthem to craft our luxury wine. Our leadershipis highly attuned to safety protocols at
Duckhorn, ensuring that safety messaging iscommunicated and distributed widely acrossall areas of business. Employees receive
updates to regulations and company safety
policies in Spanish and English via email andthrough physical paper posts at each work site
for those without access to email.

Safety Tailgates“Safety tailgates” remain a unique partof Duckhorn’s safety culture and are
implemented throughout all of our vineyard
and winery operations. Conducted in both
English and Spanish, safety tailgates are an
in-person safety training opportunity thatallows team members to review a relevant
safety topic applicable to the winery andhazards they are exposed to, reinforcing to theemployee the best practices and protocols to
avoid an injury. Our safety tailgates are heldat least once a month and supplement our
official Health and Safety training program tocreate a comprehensive employee health andsafety experience. Along with the thousandsof training hours conducted over FY23 at all
properties and facilities, we held 160 safety
tailgates over the course of the year, an
increase of about 5% since FY22.

The Duckhorn Portfolio Responsibility and Sustainability Report47

Occupational Health and Safety (“OHS”)
Program

Safety Processes for Future Implementation and Timely Updates

Our comprehensive OHS program consistently
exceeds Cal OSHA and Federal OSHA
regulatory requirements, allowing us tocome closer to our goal of a “zero-incident”
workplace and creates a proactive safety
culture. Our Environmental Health, Safety and
Risk ("EHS&R") team routinely visits each
property to review health and safety practices,collaborate with team members on addressing
safety concerns and implement improvements
where necessary. Each site receives a safety
scorecard quarterly and these scores inform
subsequent discussions around how each site
is managing safety protocols and strategies
that will address any identified concernsor risks. Our OHS policies and procedures
extend to all employees and contractors.
Contractors are also expected to meet or
exceed our expectations in addition to the
OHS regulatory requirements. If they do not,we conduct a performance review to mitigate
the behaviors and will reevaluate partnerships
if requirements cannot be met.
Last year, we strengthened our process for
capturing and reporting near-misses andinjuries by setting up a confidential email
address for employees to report incidents,
safety concerns and health and safety needs.
This new consolidation of incident reporting
systematizes the oversight of all reported
incidents, so we may better manage andtrack safety at the company and has beenused very successfully over the past year.
We are currently preparing to launch a new
digital safety management system that would
extend to all sites and further advance data
tracking and streamline our health and safety
programming.

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SocialBaseline Safety Processes

FY23 Update

We are currently in the build phase of
Implement a comprehensive safety management system
the HSI Safety Management platform,
that will be a more robust solution to the existing digitalwith expected launch during FY24.
workflow management system piloted this year. Thissystem will have Safety Champions and managers using
this platform for all safety submittals and corrective action
tracking.
Integrate our existing HRIS system to begin tracking
training records and explore the use of a Learning
Management System (“LMS”). Presently, training records
are not consolidated in a single data platform, so using
an LMS will help keep records organized as well as alert
managers and employees to required training refreshers
and due dates.

We now have an LMS module via HSI
that is also in the build phase, withexpected launch during FY24.

Establish an annual emergency preparedness drill
schedule for participation by all sites.

Annual evacuation drill schedule wasestablished and annual evacuation drills
completed.

Implement additional practice drills for employees,
including active shooter and earthquake drills.

Provided our first "Great Shakeout"
earthquake communication companywide to provide earthquake response
reminders.

Increase the involvement and participation of hospitality
and sales teams in safety meetings and initiatives.

Goal projected to be incorporated in
FY24.

Establish a company-wide safety calendar so employees
can have better visibility into upcoming trainings,
webinars and health and wellness resources.

Ongoing process as part of employee
Intranet rollout. Partnership with IT todevelop calendar on Intranet page inprocess.

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The Duckhorn Portfolio Responsibility and Sustainability Report48

Injury Illness Prevention Program (“IIPP”)

Our comprehensive IIPP is a written system that lays the foundation for protecting the healthand safety of our employees and houses our safety programs and policies in compliance with the
California Code of Regulations. The program aims to eliminate foreseeable dangers that could leadto injuries, work-related illnesses and other hazardous conditions. These programs and policies arereviewed and updated annually or as appropriate. Our IIPP ensures our employees receive effective
training and have the tools to identify specific workplace hazards in an appropriate manner. It also
involves all employees, from supervisors to management, in developing our safety procedures.

Safety Training

Interdepartmental Safety Committee

Employees undergo regularly scheduled rolebased safety training offered in both English
and Spanish, addressing a number of topics,
including:

Duckhorn’s Safety Committee is comprisedof a cross-section of employees (“Safety
Champions”) in departments across all
locations to ensure consistent applicationof our safety policies and initiatives. Oneor more Safety Champions is nominated ateach property location and, along with theirsupervisors, monitor our operations and reportpotentially unsafe conditions and safety needs
to our Environmental Health, Safety and Risk
team for remediation before accidents occur.

• Emergency preparedness• Forklift and scissor lift trainings andcertifications• Workplace hazards and injury prevention• Heat stress• Fire safety• Harvest safety

22%

11%

% of Injuries/
Illnesses by
Department

Office Worker
DTC/Marketing
Production

56%

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The Duckhorn Portfolio Responsibility and Sustainability Report49Understanding Our Safety Metrics
Total Recordable Incident Rate (TRIR) 3.13 cases per 100 full-time equivalent worked
Fatality Rate: 0 fatalities reported for FY23
Near-Miss Frequency Rate: average of 0.50 cases per monthThree-Year rolling average TRIR: 3.70 cases per 100 full-time equivalent worked
We saw a decrease in both TRIR and Near-Miss Frequency Rates year-over-year, down (13)% and(25)% respectively since FY22. We use these and other metrics to inform our progress against ourgoals, are are encouraged by this development. We believe these improvements are attributable tothe investments we've made in both our EHSR team as well as our safety procedures.

Total Recordable Incident Rate

Moving forward, and in accordance with the goals we have established as part of our FY23 ESG
goal development process, in addition to the fiscal year metrics, we will also be reporting a threeyear TRIR rolling average to benchmark our progress against our safety goal. While we invest in
and prioritize all aspects of employee safety, we believe that by using a three-year rolling average
to measure our TRIR, we'll be able to normalize against any one-off increases due to site or
employee expansion or extraneous issues (e.g., during COVID, we counted employee-to-employeetransmission as part of our recordable rate).

5
4
3
2
1
0
FY21

FY22

FY23

Decrease our Total Recordable Incident Rate (TRIR)
three-year rolling average to be at or below industry
level
Based on the most available data, the industry TRIR is 2.9.24 We continue to work
diligently to lower our TRIR to meet industry levels through enhancement of oursafety culture via targeted, tailored, in-house training programs and protocols,
among other planned initiatives.
24

Information based on 2021 data from the Department of Labor, which is the most current industry data available.

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The Duckhorn Portfolio Responsibility and Sustainability Report50

PR OMOTING RESPONSIBLE ENJOYMENTOur customers enjoy our luxury wines when
visiting our tasting rooms, dining at a favorite
restaurant or entertaining at home. Whether
a bottle is opened for a simple weeknight
dinner or a festive celebration, we always
encourage safe and responsible consumption
in moderation. We adhere to applicable local,
state and federal regulations, in addition to
the California Wine Institute’s codes andstandards regarding advertising, responsible
beverage service and direct shipping. We
always promote responsible consumption of
our wines and believe that as a leader in theluxury wine space, we have a role to play incelebrating moderation to encourage safe,
lively and connected communities.

Our Direct-to-Consumer Offering

Through our direct-to-consumer (“DTC”)
service, customers can responsibly share
our wines with friends and family at home.
We use a third-party compliance softwaresystem and our in-house DTC and regulatorycompliance personnel to monitor our directto-consumer practices. Our process involves
interdepartmental coordination between the
DTC and compliance teams, which allows foroversight of the shipments. Our DTC software
identifies the rules and regulations in eachstate and region to prevent any potential
infraction and seeks to ensure our wines only
reach those of legal age. Our internal system
uses signature and age verification for orders
placed online as additional oversight.

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SocialOur Tasting Rooms

Our tasting rooms are designed to offer arelaxing and engaging environment for theenjoyment of our wines. Our seated modelof hosting guests provides a mature andresponsible guest experience, and only those
who are 21 years of age or older are allowed in
our Napa Valley tasting rooms. We prioritize
the health and well-being of our visitors
by monitoring for signs of intoxication andimplementing a measured tasting experience.
All of our tasting room employees are required
to complete and show proof of responsible
beverage service training certification by
the Alcohol Beverage Control ("ABC")
prior to serving customers and we always
encourage our guests to savor the momentand explore the complexities of our wines
by accompanying each tasting with a foodpairing or palette cleanser.
We clocked 152 hours of responsible
marketing and beverage service training
for FY23 for our hospitality employees inconnection with attributable to the new
Responsible Beverage Service guidelines
program by the ABC that went into
effect September 1, 2022.
The ABC guidelines are aimed at reducing
alcohol-related harm to consumers andcommunities through education onmechanisms to eliminate unsafe consumption
habits and overuse of alcohol. We anticipate
these training hours to fluctuate year-to-year
due to the three-year expirations of thesecertifications.

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The Duckhorn Portfolio Responsibility and Sustainability Report51

Our Advertising

Duckhorn approaches our marketing and advertising in a thoughtful, consistent and structured
manner to promote the responsible enjoyment of our luxury wines. Our marketing team is
responsible for developing and overseeing Duckhorn’s content, from our bottle labels to our
websites, print and digital ads, radio, podcasts and social media content. In FY23, we reported
approximately 90% of our advertising impressions were made on individuals at or above thelegal drinking age, which is in line with expectations for broad-based advertising. Across ourmarketing platforms, Duckhorn adheres to the Wine Institute’s best practices, detailed in its Code ofAdvertising Standards and Digital Marketing Guidelines.
These standards provide guidance on responsible content and placement, which requires:• Promoting wine consumption as a mature lifestyle• Avoiding imagery of excessive drinking• Selecting appropriate brand ambassadors• Monitoring of site activity
We maintain strict standards by which we conduct our marketing activities and heavily scrutinize
any situation that may appear inappropriate. Our tenured marketing leadership is involved inevery step of the marketing and advertising process, and is able to proactively spot and mitigate
situations that may be out of compliance. Finally, our trade practice initiatives are run through ourinternal legal and compliance teams to ensure we conform with the latest regulatory requirements.
For FY23, we reported no incidents of non-compliance with industry or regulatory labeling or
marketing codes. Additionally, we reported no monetary losses due to legal proceedings associatedwith marketing and/or labeling practices for FY23.
We continue to focus on protecting our brands’ advertising impressions from individuals under
the legal drinking age. We have implemented age-verification systems, age-gating when visiting
our website or social media channels and age-confirmation when purchasing our wines online.
Additional measures include restricting advertising on platforms that appeal to younger audiences,and directly targeting advertising and media, such as product promotion in movies and television,
for audiences at or above the legal drinking age.

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52

CONTRIBUTING TO OUR COMMUNITIESThe Duckhorn Portfolio Founders Fund (“DPFF”)

In 2020, we established the Duckhorn Portfolio Founders Fund (“DPFF”), the philanthropic arm of
our company, with the aim to support local organizations focused on aiding the educational pursuitsof historically disadvantaged groups. Over the past three years, the DPFF has provided grantawards to nine local organizations totaling $400,000 in funding. In our third year, we are pleased
that the DPFF was able to grant $150,000 in awards to five deserving organizations.

DPFF Grant Award Process and Oversight

The DPFF Committee (the “Committee”) is comprised of a diverse cross-section of employees
from each of the Company’s departments in order to achieve a balanced approach to grant funding
selection. In order to be considered for funding, an organization must be focused on education,
serve the Napa, Sonoma or Central Coast regions and maintain 501(c)(3) tax-exempt status. The
search for potential DPFF grantee organizations begins with a company-wide call for nominationsof organizations that meet this criteria. In 2023, Duckhorn employees nominately approximately
17 organizations for grant consideration. After receiving nominations, the Committee assessed
each organization’s eligibility by way of a detailed review of supplemental materials and virtual
meetings with executives from the top organizations selected by the DPFF. Additionally, theCommittee aimed to evaluate the ways in which the Company could meaningfully contribute toeach organization, not only through financial support, but also with volunteer hours through our
Volunteer Time Off ("VTO") program. After rigorous internal review, five deserving organizations
were each awarded a substantial grant. The Duckhorn Executive Team supplemented the Company’scontribution, bringing the total overall grants to be awarded by the DPFF to $150,000 for FY23.
Each recipient organization is unique in its approach to service, but all of the recipient organizations
reflect the principles highly valued by Duckhorn’s founders.
The DPFF Committee awarded grants totaling $150,000 in July 2023 to support five localorganizations:• School on Wheels• Sonoma State University (Wine Industry Scholars Program)• Elsie Allen High School Foundation• Napa Valley Farmworker Foundation• North Bay Children’s Center

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The Duckhorn Portfolio Responsibility and Sustainability Report53Charitable Giving

While we are extremely proud of the DPFF, it
is but one of the many philanthropic efforts
undertaken by the Company each year. In
addition to the annual DPFF contributions,
Duckhorn is active in charitable giving throughother avenues. During FY23, Duckhorn
gave a total of $306,230 in donations –this included $150,000 from the DPFF and$156,230 in other financial donations tovarious wine industry, political, university orsocial programs. In addition, we contributed
in-kind donations, including donated bottles
and experiences, which totaled $455,881.
Duckhorn continues to find ways to give backto its communities by way of the DPFF andother internal opportunities.

Increase use of Volunteer Time Off (VTO) hours inour community by employees
Through increased communication and internal promotion of our
VTO program, we aim to increase participation in the program in ourcommunities. Communications will be posted on our new employee
intranet and greater team building is planned to be programmed around
VTO in the future.

Volunteer Time Off (“VTO”)

The VTO program, launched in 2021, allows
most full-time employees eight hours per
year to volunteer at charitable organizationsof their choosing while retaining theirpay. Over FY23, we reported 64 hours ofvolunteer time off used and given backto the community. We aim to continue toincrease participation in subsequent years
through campaigning awareness of thisbenefit to employees and encouraging teamvolunteer events. The Company encourages
employees to use their VTO hours at local
DPFF grantee organizations to empower ourpartnerships with these fantastic, vetted, localorganizations. We believe that VTO efforts
are meaningful steps towards fulfilling ourcharitable commitments, using the valuable
resource of time to give back.

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The Duckhorn Portfolio Responsibility and Sustainability Report54

QUALIT Y M ANAGEMENT
We are always safeguarding the curation of high-quality wines for our customers, as our winery andtechnical teams leverage state-of-the-art technology to ensure optimal products and consistentquality. Our quality management procedures are woven into each stage of the production process,and the high bar we set for our grapes is applicable to fruit from our Estate vineyards and fruitfrom our grower partners. We scrutinize all grapes we receive from our growers to help ensure theproduct is free from insects, pesticide residue, mildew, mold and bunch rot organisms.
Approximately 43% of our production is conducted at our Waterfowl winery. Waterfowl is now
our second largest production facility, after our recent acquisition of Geyserville Winery, and iscertified ISO 9001. The certification means Duckhorn’s production system meets the establishedbest practices to achieve a quality product. At present, our processes integrate documented,
regular quality checks of wine as it moves through each phase of production. The quality assurance
processes and practices at Waterfowl are mirrored and implemented at both our wineries and ourcustom crush partner facilities.
With the addition of Geyserville winery to our production portfolio, we are also bringing alarge portion of our production capabilities in house, furthering our ability to have end-to-end
control and oversight in the production process.
With respect to transportation, a critical element of our supply chain, we choose our distribution
and transportation partners based on a series of quality-related indicators, such as their ability tomonitor and control temperatures to maintain the integrity of our wine.
With respect to quality of our products, we have written statements from our glass, cork, capsule,screw cap, and carton vendors they do not intentionally use or distribute any products that cancontain PFAS chemicals.25

Supply Chain

We frequently evaluate our supply chain vendors with respect to their adherence to expectations
for quality, customer service responsiveness and service availability. We continue to implement
additional measures to maintain quality throughout our supply chain. In FY22 we set a more
stringent standard for our supply chain questionnaires, which in addition to asking about ethicalmanagement procedures, now include questions on topics relating to the environment and safety.
These questionnaires are used in audit procedures and to ensure our third-party providers perform
at or above our standards. Our corrective action process ensures that if issues are identified,effective and timely improvements are made to prevent recurrence. In 2023, we implemented just
one supplier corrective action plan to better our quality standards and products. Additionally, we
conducted seven Root Cause Problem Solving sessions to improve our internal procedures.

25

PFAS are defined as “perfluoroalkyl and polyfluoroalkyl substances"

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The Duckhorn Portfolio Responsibility and Sustainability Report55

GOVERNANCE

Our core company values ofrespect, hard work, collaborationand innovation underpin our efforts
for effective and diligent corporate
governance. These values reinforce
our commitment to our stockholders,promote the development of ourlong-term business interests andstrengthen the accountability andtransparency of the Company’s
management. As a company that has
always had external stockholders, weare keenly focused on sustainablegrowth and accountability. This
longstanding business andownership structure means thatthe responsibility we feel to ourstockholders is deeply engrainedin our Company's operations andculture. Duckhorn strives to conductbusiness in an honest and ethicalmanner, ensuring compliance withall applicable rules and regulations
and adherence to industry and publiccompany best practices.

IN THIS SECTION:
BOARD OF DIRECTORS AND COMMITTEEOVERSIGHTOUR MANAGEMENT TEAMENTERPRISE RISK MANAGEMENT
GOVERNANCE GUIDELINES, POLICIES AND
PRACTICESDATA SECURITY AND CUSTOMER PRIVACY

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The Duckhorn Portfolio Responsibility and Sustainability Report56

BOARD OF DIRECTORS AND COMMIT TEE OVERSIGHT
Our Board is tasked with guiding the development and execution of business strategy by management,
ensuring accountability at all levels of the Company and overseeing management and mitigation of therisks inherent to our operations. This work is all done in accordance with and pursuant to our Corporate
Governance Guidelines.
Today, our Board is comprised of seven members who have a range of experiences, perspectives, skills
and backgrounds. Members of the Board draw upon expertise in a wide range of industries, including
wine and spirits, retail, e-commerce, consumer goods and technology. They also serve or have served as
public and private company executives and directors, bringing managerial and operational experience toshaping and overseeing the strategy of a growing luxury consumer goods business.

Board of Directors Diversity26

We are proud of the diversity of our Board, and we aim to continue to enhance its diversification in
future years. Female directors represent 43% of the Board and 14% of the directors identify as ethnicallydiverse. In addition, 57% of our Board has held, or currently holds, an executive-level position at a publicly
traded company, which affords us opportunities to incorporate best practices learned from tenured
executives of other public companies.
When identifying candidates to serve on our Board and its committees, the Board believes in the benefitsof diversity among its directors and seeks director candidates that possess a combination of skills,
professional experience and diversity of background and viewpoints necessary to oversee the business.
Directors and director candidates should have the requisite skills and expertise to complement ourcurrent Board composition while supporting the strategic vision and trajectory of the Company and the
management team.
In FY23, the Board prepared a skills and diversity matrix which captures the skills that best characterize
the needs of the Board as well as certain demographic information, including age, gender and raceand ethnicity. Each director self-reported his or her skills and demographic information. This matrix is
included in our annual proxy statement and is a tool for the Board and the Nominating and Corporate
Governance Committee to use in assessing director nominees and Board committee composition. The
use and disclosure of this matrix serve to strengthen our corporate governance practices and increasetransparency and accountability to our stockholders.

14.30%

43%

Ethnic Diversity

Gender Diversity

85.70%

57%

Male
FemaleHispanic/Latino
White

Data as of November 15, 2023. While this FY23 report draws upon data as of the end of our Fiscal Year 2023 (July 31, 2023), some data isreported outside this range.

26

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The Duckhorn Portfolio Responsibility and Sustainability Report57

Board of Directors Structure andCommittee Oversight

Audit Committee

The Audit Committee executes, among other matters, the oversight responsibilities related to
managing enterprise risk policies, financial risk, internal controls, financial reporting practices,
regulatory compliance and cybersecurity. The Audit Committee provides guidance to managementwith respect to major risk exposures and regularly examines how these risks are mitigated andremediated.

Our Board is divided into three classes of
directors with each class serving staggered
three-year terms. The term length andclassified structure ensure that, at any given
time, the majority of our directors havedeep knowledge of the Company and a firm
understanding of its goals, and it allows
for continuity and stability of the Board,
promoting the balance of long-term andshort-term interests of the Company and its
stockholders.

Nominating and Corporate Governance Committee

The Board has three Committees: the Audit
Committee, the Compensation Committee andthe Nominating and Corporate GovernanceCommittee. Each of the committees operates
under its own written charter adopted by the
Board. These committees meet regularly andplay a vital role in the Company’s governance,
including in monitoring and managing specificareas of risk. The functions of each committee
are described in greater detail at right.

Director Nominee

Director Since

The Nominating and Corporate Governance Committee executes the oversight responsibilities
related to corporate governance matters, including business conduct and ethics, appointment of
new directors, and certain elements of stockholder engagement. The Nominating and Corporate
Governance Committee is heavily involved in developing and overseeing strategic priorities related
to our ESG initiatives, receives updates on sustainability matters and guides management withrespect to the establishment, measurement and goal setting for key metrics. The Nominating
and Corporate Governance Committee also oversees the annual evaluation of the Board andcommittees’ performance.

Compensation Committee

The Compensation Committee executes the oversight responsibilities related to, among othermatters, our executed compensation plans, equity award administration and risks related to ourcompensation plans and program. The Compensation Committee regularly oversees human capitalmatters and the associated opportunities and risks.

Committee Membership(s)Compensation Committee Chair

Melanie Cox

2021

Adriel Lares

2021

Audit Committee ChairJames O’Hara

2016

Compensation Committee

Charles Esserman

2016

Nominating and Corporate GovernanceApproximately

71%
of our Board
reported skills and/or
background related toEnvironmental, Social,
Governance experience.

28%

Nominating and Corporate Governance Chair

Michelle Gloeckler

Audit Committee

2021

Compensation Committee

Daniel Costello

2016

Nominating and Corporate Governance

Deirdre Mahlan

2021

Chairperson of the Board of Directors

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ESG Related Skills

The Duckhorn Portfolio Responsibility and Sustainability Report58

OUR MANAGEMENT TEAM

Employee Diversity

We seek opportunities to engage diverse
candidates and promote internally wheneverpossible to continue along our path of diverse
representation:

At the helm of Duckhorn is an exceptional and experienced management team, made up of six
strategic and functionally focused professionals who are dedicated to the success and growth of
the Company. This management team has successfully managed the business through a range of
economic conditions, challenging environmental externalities and the successful integration of
two acquired winery brands. Environmental impacts to our business have become more prevalent,
which has been the impetus for a greater focus on sustainability and climate resiliency within ourorganization.

• Approximately 38% of our workforce
identifies as an ethnic minority; accordingly,
we post all major company communications
in both Spanish and English to ensure that
all employees are kept abreast of importantdevelopments and can avail themselves of
all applicable opportunities.

Leadership Diversity

Our management team of six executives embody a diverse leadership team:3

1

Females

LGBTQ

1• We cast a wide net to prospective
employees of varying backgrounds
by posting to multiple job application
platforms: WineJobs, LinkedIn, GlassDoor,
Indeed, our company website and local
service providers, as appropriate for therole.

Immigrant

The management team represents a strong mix of tenure both at the Company and in the
broader wine industry simultaneously supporting Duckhorn's traditions and culture, while offering
opportunities to grow and learn from new perspectives.
With respect to diversity in management and our broader employee base, we consistently
emphasize diversity in recruitment efforts. Supporting our executive leadership team is a deep
bench of highly talented vice presidents, directors and managers, many of whom have a long history
with us and with our winery brands. Throughout our history, we believe we have been able to attract
the highest caliber employees in the wine industry because of our reputation, prioritization ofsustainability and corporate responsibility, holistic focus on our team members and commitment todeveloping, empowering, supporting and promoting our employees. We are very proud that for thethird consecutive year, over 52%, of our internal leaders are female, highlighting our commitment
to diversity at the leadership levels of the company. 27 Throughout our history, we have maintained
our focus on ensuring women have a robust presence in our leadership through internal promotion
and mentorship. In addition to our strong representation of women in leadership throughout thecompany, we are also proud that approximately 18% of our leadership positions are held by ethnic
minorities. We understand the need to build out further programming to encourage and support
greater representation of minorities in leadership. Accordingly, we will continue to find new methods
to support women and minorities in all positions at the company in the future.

Our Employees and Our Future

The commitments and investments we make in our employees can be highlighted through a numberof datapoints. We are particularly proud of the following:• Our rate of employee turnover is lower than the industry average, which is reflective of ourcommitment to our employees and enhances the performance of our business.
• Looking to the future, we have made commitments to management training programs in 2024.
While still in the developmental stage, we will incorporate two different programs for leaders.
We expect that modules will include a number of topics, including: Effective Hiring and Talent
Assessment, The Power to Lead and Develop Others, Effective Communication, Building High
Performing Teams, Problem Solving and Decision Making, Financial Acumen and M&A.
27
28

• We have internal incentives to encourage
diverse workforce recruitment. Thisencourages employees to refer candidates
who they believe would contribute to ourteam culture and overall company mission.
• We work with organizations suchas Experience International andCommunicating for Agriculture Education
Programs that assist in bringing ininternational candidates to share and learn
ideas, beliefs and agricultural practices
through our seasonal harvest positions.
• We continue to evaluate resources thatwiden the scope of job listings to ensure
diverse outreach. We have participated in
job fairs focused on DE&I such as the ‘Be
The Change’ Job Fair, a job fair platform topromote diversity and inclusion specificallyin the wine industry.28• Our applicant tracking system andrecruitment processes enables fair and blindhiring to reduce potential bias from thestart during the resume review and phone
screening process.

“Leadership” refers to those individuals who are titled Executive Vice President, Senior Vice President, Vice President, Director/Senior Director, Manager or Supervisor.
https://wineindustryadvisor.com/2020/10/29/be-the-change-virtual-job-fair

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The Duckhorn Portfolio Responsibility and Sustainability Report59ENTERPRISE RISK MANAGEMENT
In our third year as a public company, we
have continued to strengthen our processes
with respect to the identification, oversightand management of company risk. The Boardand its committees oversee Duckhorn’sframeworks for identifying, monitoringand mitigating risk. Our Audit Committee,
for example, oversees management's
assessment of enterprise risks and strategies
for mitigation, including varied areas suchas data and cyber security, supply chain
challenges, changing consumer trends andfactors affecting financial performance. Our
Compensation Committee is responsible foroverseeing the management of risks relating
to our executive compensation plans andarrangements, the incentives created by thecompensation awards it administers and how
management is managing human capital.
Our Nominating and Corporate GovernanceCommittee oversees risks associated withcorporate governance, business conduct
and ethics and environmental sustainability
matters.
To ensure the Company’s risk oversight is
attuned to the principal risks, management
undertakes a full cross disciplinary risk
analysis quarterly, which serves as the basis
for the full briefing that is provided to the
Audit Committee and subject-matter specificupdates that are provided to the Board, andother committees. The Board uses thesebriefings as the basis for their guidance to
Duckhorn’s management team, ensuringthat employees are actively engaged in risk
management in their respective businessareas.
The chart on the right depicts our five mostsalient areas of risk and the mitigation
techniques we employ as of the end of
FY23, under the oversight of the Board andits committees.

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Strategic Execution

Failure to maintainrevenue growth

A failure to maintain revenue growth is a salient risk to the business. We work
diligently to address this dynamic risk through thoughtful price increases on
the front-line, while ensuring that the variance between front-line suggested
retail price ("SRP") and discounted SRP is tightened to maintain our attractive
margin profile. We also actively work to ensure we are well staffed with quality
salespeople and analysts to get our wines on the shelves of the right stores andrestaurants. Finally, our marketing team continuously focuses their efforts on
consumer activation to increase awareness and drive pull-through, expanding
our devoted consumer base and driving sales.

Failure to close/
successfully integrateacquisitions

A failure to close or successfully integrate an acquisition proves to be atimely risk. We address this risk through the development of a comprehensive
integration checklist, governance, and related support to ensure we have athorough process in place. In addition, we benefit from best practices gleaned
from the prior successful acquisitions of Calera and Kosta Browne. Keeping our
key internal and external team members informed throughout the acquisition
process with continuous messaging and education is also critical. Finally,
developing thoughtful staffing and retention plans, as appropriate, ensures key
members of our teams are engaged.

Sub-optimal
growth management

Sub-optimal growth management can be the product of business discontinuity
or brand devaluation, among other issues, but we are poised to manage this riskin several ways. Our management team meets weekly, giving each executive acomprehensive understanding of the state of the business and its challenges.
This meeting structure encourages a focus on addressing long-term challenges,
while also focusing on short-term results. In addition to a continuation of ourdisciplined M&A process, we continue to make strides building and enhancing
the systems needed to support the sustained growth of the company.

Sub-optimal investor
communications

Sub-optimal investor communication is a potential risk we are highly attuned toas a public company. As we mature in our public tenure, we have built systems
and processes to ensure consistent themes and messaging across all investor
communications. We work interdepartmentally, vetting internal financial analysis,
projections, and industry data to authenticate our story in the broader context.
We always seek to maximize the impact of our time spent with equity analysts
and investors, and we have invested resources into our internal investor relations
functions.

Failure to attract andretain talent

A failure to attract and retain talent is a high importance risk at Duckhorn, as
talent management and the safeguarding of our culture is of utmost importance.
To mitigate this risk, we have increased transparency of employee benefits
through curation of a comprehensive employee intranet as well as via otherinvestments on the People team. We have maintained our robust referral bonus
program and have implemented other bonus programs to incentivize retention
and performance. We also actively engage and retain top talent throughcompetitive benefits and wages while encouraging a vibrant and desirable
culture.

Governance

The Duckhorn Portfolio Responsibility and Sustainability Report60

GOVERNANCE GUIDELINES, POLICIES AND PR ACTICESIn addition to our Corporate Governance Guidelines, which outline the responsibilities of our Board,
the Company maintains several policies and practices which ensure Company employees, including
management and directors, act in accordance with best corporate governance practices as well as
legal and NYSE requirements. The Nominating and Corporate Governance Committee reviews thesepolicies and guidelines, along with the committees’ charters and Company’s bylaws, on an annual
basis to ensure no updates are needed. Below are summaries of some of our policies and practices.

Stockholder Engagement

We value and benefit from stockholder engagement and strive to achieve regular communication
throughout the year. In addition to engaging with stockholders through our quarterly earnings calls,
we routinely engage with stockholders in a variety of other ways including:• One-on-one meetings with investors• Participation in investor conferences and publicly available fireside chats• Participation in Non-Deal Roadshows• Q&A during earnings calls
Additionally, we strive to communicate key messaging about Duckhorn to our stockholders in a
number of settings including:• Communication in our annual ESG report• Disclosure in our annual Proxy Statement• Materials we use from time-to-time to supplement our annual earnings announcement
Stockholders and other interested parties may also communicate directly with the Board orindividual directors by writing to the Company's corporate secretary.

Whistleblower Policy

Duckhorn has a comprehensive Whistleblower Policy that protects those who bring forth concerns
related to business practices or other business-related issues for investigation. Employees can use
the whistleblower hotline to report a complaint (anonymously or otherwise) or provide information
directly to the Legal or People teams, or their manager. Complaints are reviewed and investigated,
as appropriate, by the Executive Vice President, Chief Strategy and Legal Officer, or the Executive
Vice President, Chief Financial Officer, in the event a member of the Strategy and Legal Department
is the subject of the concern. All whistleblower and similar complaints are presented to the Audit
Committee and Chief Executive Officer, including the results of any investigation and remediation
measures.

Stock Ownership Guidelines

The Board has adopted stock ownership guidelines for our independent directors and executive
officers to further align decision makers with shareholder value. Under these guidelines (i) our Chief
Executive Officer is required to acquire and own stock or stock equivalents in an amount equal to
five times his or her annual base salary, (ii) all other executive officers are required to acquire andown stock or stock equivalents in an amount equal to three times their base annual salary, and (iii)
all independent directors are required to acquire and own stock or stock equivalents in an amountequal to four times their annual cash retainers. Independent directors and executive officers are
required to meet the applicable ownership requirements within five years of becoming subject tothem.

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The Duckhorn Portfolio Responsibility and Sustainability Report61

Insider Trading

Our Insider Trading Policy prohibits our Directors, officers and employees from entering into
hedging or monetization transactions, including through the use of financial instruments such as
prepaid variable forwards, equity swaps, collars and exchange funds. The Board believes that whenthose types of transactions are entered into, the individual involved in such an arrangement may nolonger be subject to the same risks, and therefore may not have the same objectives, as our otherstockholders. Accordingly, these transactions are prohibited.

Related Party Transactions

The Company’s Related Party Transactions Policy ensures that all potential related party
transactions are identified and evaluated by the Audit Committee pursuant to legal, accounting,and NYSE requirements. Under the policy, our Audit Committee is responsible for reviewing andapproving related party transactions. In the course of its review and approval of related party
transactions, our Audit Committee will consider the relevant facts and circumstances to decide
whether to approve such transactions and ensure the requisite disclosures are made.

Political Activity and Lobbying

Duckhorn participates in industry advocacy, political activity and lobbying efforts through variousorganizations, including:• The Wine Institute, which serves as a public policy advocacy organization representing over
1,000 California wineries and affiliated businesses• Napa Valley Vintners, which is a non-profit trade organization for vintners producing wine in
Napa Valley• Winegrowers of Napa County, which is a non-profit organization whose principal mission is toadvance policy that preserves sustainable agriculture while protecting the ability of wineries to
produce, market and sell wine
Through our Board seats and active participation in these and other trade organizations, we areable to voice the concerns of our organization and seek to actively shape the narrative of the wine
industry and its regulation.
Duckhorn’s political donations are typically made locally in the areas we conduct our farming,
winemaking and hospitality operations. Donation proposals for candidates are prepared by ourinternal Government Relations Team in the Strategy and Legal Department and all proposals areapproved by the President, Chief Executive Officer and Chairperson.

Business Code of Ethics

Our Board and management team are focused on establishing trust with and ensuringaccountability to Duckhorn’s stakeholders. Toward that end, they have translated our Company
values, practices, standards and principles into our Code of Ethics (the “Code”) and related
Company policies to guide the actions and behavior of all employees. The Code serves as a guide toacceptable business conduct for all employees by promoting ethical conduct and fair and accurate
disclosure of documents, deterring wrongdoing and ensuring accountability. Because every
employee is a representative of the Company, it is the expectation that all personnel demonstrate
exemplary standards of ethics and integrity and act in a manner consistent with the principles
outlined in the Code in all interactions. All employees review and agree to act in a manner consistent
with the Code annually.

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The Duckhorn Portfolio Responsibility and Sustainability Report62

D ATA S E C U R I T Y A N D C U S T O M E R P R I VA C Y
We recognize the value of enhancing and developing Information Technology (“IT”) in every areaof our business, and we rely on many IT systems, both owned by us and administered by third
parties, to effectively manage, analyze and support the Company’s daily operations. Our IT systems
and functions are overseen by our Executive Vice President, Chief Financial Officer and our Vice
President of IT, who are in regular contact with the Audit Committee. Cybersecurity is handled
jointly by the IT Team and Legal Team in an integrated manner. Together, these departments
manage and assess enterprise risk and cyber-risk and maintain the integrity of our customers’ dataand privacy, with a focus on compliance with applicable law and adherence to best commercial
practices.
We have expanded our IT team to include a more built-out team of System Administrators whoare consistently monitoring our system for breaches, points of potential exposure and customer
information security. As a result of our oversight structure, the Board and its committees are poised
to provide guidance quickly regarding adverse events, should they arise, so we can limit risk andmaximize business continuity.

System Security

Our IT systems are guarded through a multi-layer technology stack and a strict security protocol.
We continuously monitor our systems, and regularly conduct third-party security audits and testingto verify our network’s integrity and protect against compromises from any potential internal orexternal source. We also maintain comprehensive multi-year replacement and upgrade programs
to enhance security and optimize performance. Additionally, these systems are subject to annual
audits under Sarbanes-Oxley protocols to ensure these processes remain robust.

Personal Data Protection

In order to maintain the trust of our customers, employees and business partners, we must ensure
their information is managed safely and professionally. One of our primary data security risks
relates to the storage of personal information on our networks. This includes personally identifiable
information collected from our employees, suppliers and customers in our tasting rooms and on our
e-commerce websites, as well as other information critical to our business operations. To safeguard
personal information, we employ a number of practices in our data privacy program.
Key components of our data privacy program:

Oversight & Employee Training

Our Board and Audit Committee oversee
our information security protocols andimplementation of the cybersecurity program,as executed by our management team andIT specialists. Employees of the Company,
as well as any other relevant third parties,
receive regular updates on our cybersecurity
events and activities from our IT department.
Employee cybersecurity training is required
as part of the onboarding process and isrefreshed, at minimum, on an annual basis.
The curriculum for each employee is tailoredto their role at Duckhorn and may include data
security, PCI compliance, phishing and related
vulnerability topics.
In addition to the employee trainings
we require as part of our cybersecurity
program, we invest in our employees
to ensure their systems are secure, On
average, we spend approximately $760
per full-time employee.

• Personal information is not sold or transferred to unaffiliated third-parties, nor collected from orabout individuals who are under 21 years of age• Credit card information processed at our tasting rooms and e-commerce site is not stored, andall systems are compliant with the Payment Card Industry (“PCI”) security council standards• Protocols and practices are in place to prevent unauthorized access, use and disclosure of
personal information• Customers can unsubscribe to promotional communications at any time
• Customers can request what personal information Duckhorn has stored, as well as request that
Duckhorn delete their information, in compliance with California Consumer Privacy Act

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The Duckhorn Portfolio Responsibility and Sustainability Report63

PERFORMANCE DATA TABLE

Key Performance Indicator

KPI Sub-Metric

Unit

FY23

FY22

FY23 Footnote(s)Total Scope 1 and Scope 2
Energy Consumed

Total amount of energy consumed

Gigajoules

33,123.00

26,576.40

Percentage of Energy Consumed
Supplied from Grid Electricity

Percentage of Energy Consumed
Supplied from Grid Electricity

Percentage

48%

71%

Total Scope 1 GHG Emissions

Gross Scope 1 Emissions

Metric tons of carbon
dioxide equivalents

1,037.00

581.18

Total Scope 2 GHG Emissions

Emissions from Electricity andEnergy Purchases

Metric tons of carbon
dioxide equivalents

1,230.30

1,220.00

Percentage of grape grower vineyards inregions with High or Extremely High Baseline
Water Stress

Percentage of grape grower
vineyards in regions with High orExtremely High Baseline Water
StressPercentage

18%

25%

Percentage of Estate Vineyards in Regionswith low to medium/high baseline water stress

Percentage of Estate Vineyards in
Regions with low to medium/highbaseline water stress

Percentage

97%

75%

Percentage of Estate Vineyards in Regionswith High or Extremely High Baseline Water
StressPercentage of Estate Vineyards in
Regions with High or ExtremelyHigh Baseline Water Stress

Percentage

3%6%Percentage of grape grower vineyards inregions with High or Extremely High Baseline
Water Stress

Percentage of grape grower
vineyards in regions with High orExtremely High Baseline Water
StressPercentage

18%

25%

Number of Incidents of Non-Compliance
Associated with Quantity / Quality of Water
Permits, Standards, and Regulations

Number of Incidents of NonCompliance Associated with
Quantity / Quality of Water
Permits, Standards, andRegulations

Number30

Total Water Withdrawn - ANNUAL

Total Water Withdrawn - ANNUAL

Gallons

10,745,075

Not Reported

Production facilities only.
Excludes WA operations.

Total Water Withdrawn per case produced

Total Water Withdrawn per caseproduced

Gallons per case

1,453.92

Not Reported

Production facilities only.
Excludes WA operations.

Number of Incidents of Non-Compliance with
Industry or Regulatory Labeling / Marketing
Codes

Number of Incidents of NonCompliance with Industry or
Regulatory Labeling / Marketing
Codes

Number00

Total Amount of Monetary Losses as a
Result of Legal Proceedings Associated with
Marketing and/or Labeling Practices

Total Amount of Monetary Losses
as a Result of Legal Proceedings
Associated with Marketing and/or
Labeling Practices

USD

$0

$0

Percentage of total advertising impressions
made on individuals at or above the legal
drinking age

Percentage of total advertising
impressions made on individuals at
or above the legal drinking age

Percentage

90%

92%

E N E R GY, E M ISS IO NS AND CLIM ATE

Excludes fugitive emissions.

WAT E R ST E WARDS H IP

R E SP O N SI B LE BUS INESS P RAC TIC E

Appendix

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PERFORMANCE DATA TABLE

Key Performance Indicator

KPI Sub-Metric

Unit

FY23

FY22

FY23 Footnote(s)34,874,029.00

Reported data represent CoreSKUs for 12 bottle cases for 750ml
bottles, represent approximately
95% of Duckhorn sales. Excludes
additional packaging used for direct
to consumer wine shipments which
are packaged and shipped by a third
party warehouse.

2,659,508.00

Reported data represent CoreSKUs for 12 bottle cases for 750ml
bottles, represent approximately
95% of Duckhorn sales. Excludes
additional packaging used for direct
to consumer wine shipments which
are packaged and shipped by a third
party warehouse.

44,801.00

Reported data represent CoreSKUs for 12 bottle cases for 750ml
bottles, represent approximately
95% of Duckhorn sales. Excludes
additional packaging used for direct
to consumer wine shipments which
are packaged and shipped by a third
party warehouse.

5,341.00

Reported data represent CoreSKUs for 12 bottle cases for 750ml
bottles, represent approximately
95% of Duckhorn sales. Excludes
additional packaging used for direct
to consumer wine shipments which
are packaged and shipped by a third
party warehouse.

31,601,954.00

Reported data represent CoreSKUs for 12 bottle cases for 750ml
bottles, represent approximately
95% of Duckhorn sales. Excludes
additional packaging used for direct
to consumer wine shipments which
are packaged and shipped by a third
party warehouse.

35,398.00

Reported data represent CoreSKUs for 12 bottle cases for 750ml
bottles, represent approximately
95% of Duckhorn sales. Excludes
additional packaging used for direct
to consumer wine shipments which
are packaged and shipped by a third
party warehouse.

313,053.00

Reported data represent CoreSKUs for 12 bottle cases for 750ml
bottles, represent approximately
95% of Duckhorn sales. Excludes
additional packaging used for direct
to consumer wine shipments which
are packaged and shipped by a third
party warehouse.

S U P P LY C H AIN AND LABO R P RACTIC E

Total weight of packaging

Total weight of packaging

Cardboard

Tin

Wirehoods

Glass

Plastic

Cork

Appendix

PoundsPoundsPoundsPoundsPoundsPoundsPounds39,530,554.00

3,017,014.00

50,532.00

5,106.00

35,868,380.00

30,120.00

348,263.00

The Duckhorn Portfolio Responsibility and Sustainability Report65

PERFORMANCE DATA TABLE
SUPPLY CHAIN AND LABOR PRACTICE Continued
Key Performance Indicator

KPI Sub-Metric

Unit

FY23

FY22

FY23 Footnote(s)Reported data represent CoreSKUs for 12 bottle cases for 750ml
bottles, represent approximately
95% of Duckhorn sales. Excludes
additional packaging used for direct
to consumer wine shipments which
are packaged and shipped by a third
party warehouse.

Paper

Pounds214,361.00

213,974.00

Percentage packaging made from recycled
and or renewable materials

Percentage packaging madefrom recycled and or renewablematerials

Percentage

27%

27%

Percentage of packaging that is recyclable,
reusable, and/or compostable

Percentage of packaging thatis recyclable, reusable, and/or
compostable

Percentage

99%

99%

Suppliers’ Social and Environmental
Responsibility Audit of Non-Conformance
Rate, Minor Non-Conformances

Suppliers’ Social and Environmental
Responsibility Audit of NonConformance Rate, Minor NonConformances

Percentage

0%0%

Suppliers’ Social and Environmental
Responsibility Audit of Associated Corrective
Action Rates for (a) Major and (b) Minor
Non-Conformances, Corrective Action Major
Non-Conformances

Suppliers’ Social and Environmental
Responsibility Audit of AssociatedCorrective Action Rates for(a) Major and (b) Minor NonConformances, Corrective Action
Major Non-Conformances

Percentage0%0%Other Financial/Monetary
Donations

USD$156,229.73$154,800.00

Financial Donations from DPFF and
Executive Matching

USD$150,000.00$150,000.00

Philanthropic Contributions - Inkind giving: Experiences (Bottles/
Tasting Pass)

USD$455,880.53$372,420.00

Volunteer Hours

Hours

64

84

Total Charitable Donations(financial)

USD$306,229.73$304,800.00

Number of training tailgates

Number of training tailgates

Number160

152

Total Recordable Incident Rate

Total Recordable Incident Rate

Number3.13

3.26

Fatality Rate

Fatality rate for Direct employees

Percentage

0%0%

Fatality rate for Seasonal/Migrant
employees

Percentage

0%0%Number of fatal accidents

Number0

0

MalePercentage

57%

63%

FemalePercentage

43%

38%

Workforce Diversity Breakdown KPIs

Direct Employee - Counts by
GenderNumber252

Reported as %Direct Employee - Counts by Gender

FemaleNumber232

Reported as %Direct Employee - % by Ethnicity

Hispanic/Latino

Percentage

31%

28%

Direct Employee - % by Ethnicity

Two or More Races (non-hispanic
or Latino)

Percentage

1%

1%

CO M M U N I T Y ENGAGEM ENT
Dollars Donated and Community Engagement

Includes bottles donated andexperiences

H E A LT H A N D SAFETYE M P LOY E E S AND D IVERS ITY
Board of Directors Gender Diversity

Appendix

Includes employees inleadership group

The Duckhorn Portfolio Responsibility and Sustainability Report66

PERFORMANCE DATA TABLEEMPLOYEES AND DIVERSITY Continued
Key Performance Indicator

KPI Sub-Metric

Unit

FY23

FY22

Direct Employee - % by Ethnicity

Native Hawaiian or Pacific Islander

Percentage

1%—%

Direct Employee - % by Ethnicity

White

Percentage

64%

67%

Direct Employee - % by Ethnicity

Asian

Percentage

2%2%

Direct Employee - % by Ethnicity

Black African America

Percentage2%

2%

Seasonal/Migrant Employee - Counts by
GenderMale

Number25

Reported as %Seasonal/Migrant Employee - Counts by
GenderFemaleNumber34

Reported as %Seasonal/Migrant Employees - % by Ethnicity

Two or More Races (non-hispanic
or Latino)

Percentage

2%

1%

Seasonal/Migrant Employees - % by Ethnicity

Black African America

Percentage

2%

1%

Seasonal/Migrant Employees - % by Ethnicity

Native Hawaiian or Pacific Islander

Percentage0%0%

Seasonal/Migrant Employees - % by Ethnicity

White

Percentage

63%

40%

Seasonal/Migrant Employees - % by Ethnicity

Hispanic/Latino

Percentage

34%

57%

Seasonal/Migrant Employees - % by Ethnicity

Asian

Percentage

0%0%Leadership Positions held by Women %Among ALL Leaders

Leadership Positions held by
Women % Among ALL Leaders

Percentage

52%

56%

Leadership Positions held by Men - % Among
ALL Leaders

Leadership Positions held by Men % Among ALL Leaders

Percentage

48%

44%

Leadership Ethnic Diversity - % by Ethnic
Group

White

Percentage

82%

82%

Leadership Ethnic Diversity - % by EthnicGroup

Two or More Races (non-hispanic
or Latino)

Percentage

1%

1%

Leadership Ethnic Diversity - % by EthnicGroup

Native Hawaiian or Pacific Islander

Percentage

1%0%

Leadership Ethnic Diversity - % by Ethnic
Group

Hispanic/Latino

Percentage

16%

15%

Leadership Ethnic Diversity - % by Ethnic
Group

Asian

Percentage

1%

1%

Leadership Ethnic Diversity - % by Ethnic
Group

Black African America

Percentage

0%1%

Leadership Ethnic Diversity - Executive - % by
Ethnic Group

Asian

Percentage

0%0%Leadership Ethnic Diversity - Executive - % by
Ethnic Group

Hispanic/Latino

Percentage

0%0%Leadership Ethnic Diversity - Executive - % by
Ethnic Group

Native Hawaiian or Pacific Islander

Percentage

0%0%Leadership Ethnic Diversity - Executive - % by
Ethnic Group

Two or More Races (non-hispanic
or Latino)

Percentage

0%0%Leadership Ethnic Diversity - Executive - % by
Ethnic Group

White

Percentage

100%

100%

Leadership Ethnic Diversity - Executive - % by
Ethnic Group

Black African America

Percentage

0%0%Leadership Gender Diversity - by Title - Male %Executive

Percentage

50%

67%

Leadership Gender Diversity - by Title Female - %Executive

Percentage

50%

33%

Appendix

FY23 Footnote(s)The Duckhorn Portfolio Responsibility and Sustainability Report67

PERFORMANCE DATA TABLEEMPLOYEES AND DIVERSITY Continued
Key Performance Indicator

KPI Sub-Metric

Unit

FY23

FY22

Leadership Gender Diversity by Title - Female - %SVP

Percentage

33%

SVP is new
designation
in FY23

Leadership Gender Diversity by Title - Male %SVP

Percentage

67%

SVP is new
designation
in FY23

Leadership Gender Diversity by Title - Female - %Vice President

Percentage

58%

60%

Leadership Gender Diversity - by Title - Male %Vice President

Percentage

42%

40%

Leadership Ethnic Diversity - Vice President % by Ethnic Group

Hispanic/Latino

Percentage

4%

4%

Leadership Ethnic Diversity - Vice President % by Ethnic Group

Native Hawaiian or Pacific Islander

Percentage

0%0%Leadership Ethnic Diversity - Vice President % by Ethnic Group

White

Percentage

96%

96%

Leadership Ethnic Diversity - Vice President % by Ethnic Group

Black African America

Percentage

0%0%Leadership Ethnic Diversity - Vice President % by Ethnic Group

Asian

Percentage

0%0%Leadership Ethnic Diversity - Vice President % by Ethnic Group

Two or More Races (non-hispanic
or Latino)

Percentage

0%0%Leadership Gender Diversity - by Title - Male %Senior Director

Percentage

13%

8%

Leadership Gender Diversity - by Title Female - %Senior Director

Percentage

88%

92%

Leadership Ethnic Diversity - Senior Director % by Ethnic Group

Hispanic/Latino

Percentage

0%8%

Leadership Ethnic Diversity - Senior Director % by Ethnic Group

Two or More Races (non-hispanic
or Latino)

Percentage

0%0%Leadership Ethnic Diversity - Senior Director % by Ethnic Group

Black African America

Percentage

0%0%Leadership Ethnic Diversity - Senior Director % by Ethnic Group

White

Percentage

100%

92%

Leadership Ethnic Diversity - Senior Director % by Ethnic Group

Asian

Percentage

0%0%Leadership Ethnic Diversity - Senior Director % by Ethnic Group

Native Hawaiian or Pacific Islander

Percentage

0%0%Leadership Gender Diversity - by Title - Male %Director

Percentage

46%

53%

Leadership Gender Diversity - by Title Female - %Director

Percentage

54%

47%

Leadership Ethnic Diversity - Director - % by
Ethnic Group

White

Percentage

88%

91%

Leadership Ethnic Diversity - Director - % by
Ethnic Group

Black African America

Percentage

0%0%Leadership Ethnic Diversity - Director - % by
Ethnic Group

Asian

Percentage

2%

2%

Leadership Ethnic Diversity - Director - % by
Ethnic Group

Two or More Races (non-hispanic
or Latino)

Percentage

2%

2%

Leadership Ethnic Diversity - Director - % by
Ethnic Group

Hispanic/Latino

Percentage

8%5%Appendix

FY23 Footnote(s)The Duckhorn Portfolio Responsibility and Sustainability Report68

PERFORMANCE DATA TABLEEMPLOYEES AND DIVERSITY Continued
Key Performance Indicator

KPI Sub-Metric

Unit

FY23

FY22

Leadership Ethnic Diversity - Director - % by
Ethnic Group

Native Hawaiian or Pacific Islander

Percentage

0%0%Leadership Gender Diversity - by Title - Male %Supervisor

Percentage

71%

90%

Leadership Gender Diversity - by Title Female - %Supervisor

Percentage

29%

10%

Leadership Ethnic Diversity - Supervisor - %by Ethnic Group

White

Percentage

57%

20%

Leadership Ethnic Diversity - Supervisor - %by Ethnic Group

Two or More Races (non-hispanic
or Latino)

Percentage

0%0%Leadership Ethnic Diversity - Supervisor - %by Ethnic Group

Hispanic/Latino

Percentage

43%

80%

Leadership Ethnic Diversity - Supervisor - %by Ethnic Group

Black African America

Percentage

0%0%Leadership Ethnic Diversity - Supervisor - %by Ethnic Group

Asian

Percentage

0%0%Leadership Ethnic Diversity - Supervisor - %by Ethnic Group

Native Hawaiian or Pacific Islander

Percentage

0%0%Leadership Gender Diversity - by Title - Male %Manager

Percentage

49%

40%

Leadership Gender Diversity - by Title Female - %Manager

Percentage

51%

60%

Leadership Ethnic Diversity - Manager - % by
Ethnic Group

Asian

Percentage

0%1%

Leadership Ethnic Diversity - Manager - % by
Ethnic Group

Two or More Races (non-hispanic
or Latino)

Percentage

1%

1%

Leadership Ethnic Diversity - Manager - % by
Ethnic Group

Native Hawaiian or Pacific Islander

Percentage

0%0%Leadership Ethnic Diversity - Manager - % by
Ethnic Group

White

Percentage

76%

81%

Leadership Ethnic Diversity - Manager - % by
Ethnic Group

Hispanic/Latino

Percentage

22%

15%

Leadership Ethnic Diversity - Manager - % by
Ethnic Group

Black African America

Percentage

0%2%

Leadership Gender Diversity - by Title Female - %Assistant Manager

Percentage

33%

57%

Leadership Gender Diversity - by Title - Male %Assistant Manager

Percentage

67%

43%

Leadership Ethnic Diversity - AssistantManager - % by Ethnic Group

White

Percentage

50%

57%

Leadership Ethnic Diversity - AssistantManager - % by Ethnic Group

Native Hawaiian or Pacific Islander

Percentage

17%

0%

Leadership Ethnic Diversity - AssistantManager - % by Ethnic Group

Hispanic/Latino

Percentage

33%

43%

Leadership Ethnic Diversity - AssistantManager - % by Ethnic Group

Asian

Percentage

0%0%Leadership Ethnic Diversity - AssistantManager - % by Ethnic Group

Black African America

Percentage

0%0%Leadership Ethnic Diversity - AssistantManager - % by Ethnic Group

Two or More Races (non-hispanic
or Latino)

Percentage

0%0%Appendix

FY23 Footnote(s)The Duckhorn Portfolio Responsibility and Sustainability Report

69

TCFD INDE X
We continue to build our climate change strategy in alignment with TCFD recommendations.

TCFD Pillar

TCFD Recommended Disclosure

Response

Governancea. Describe the Board’s oversight of climate-relatedrisks and opportunities.

Duckhorn's Board of Directors, including the Nominating and Governance Committee,
employ a cross-disciplinary approach to monitor and appropriately respond to climaterelated risks and opportunities. The Board’s governance approach is executed in partnershipwith the management team.

b. Describe management’s role in assessing andmanaging climate-related risks and opportunities.

The Board is informed of relevant climate-related risks and opportunities by the
management team through the delivery of an annual climate-related briefing. Climaterelated discussions inform all significant decisions made by Duckhorn management. The
board receives recommendations on all ESG-related matters after review of company
strategies, activities, and policies.
For more information, please see the ESG Framework and Oversight section (page 11) andthe Board and Management Oversight of Climate Risks section (page 14) of the report.

Strategya. Describe the climate-related risks and opportunities
the organization has identified over the short,medium, and long term.
b. Describe the impact of climate-related risks andopportunities on the organization’s businesses,
strategy, and financial planning.
c. Describe the resilience of the organization’s
strategy, taking into consideration different climaterelated scenarios, including a 2°C or lower scenario.

Risk
Managementa. Describe the organization’s processes for
identifying and assessing climate-related risks.
b. Describe the organization’s processes for
managing climate-related risks.
c. Describe how processes for identifying, assessing,and managing climate-related risks are integrated
into the organization’s overall risk management.

Metrics andTargetsa. Disclose the metrics used by the organization toassess climate-related risks and opportunities in linewith its strategy and risk management process.
b. Disclose Scope 1, Scope 2, and, if appropriate,
Scope 3 greenhouse gas (GHG) emissions and therelated risks.
c. Describe the targets used by the organization to
manage climate-related risks and opportunities andperformance against targets.

Appendix

Our Board and associated governance committees conduct holistic assessments to identify
climate-related risks and opportunities and are responsible for overseeing climate-related
mitigation and strategy execution. Duckhorn's COO leads day-to-day execution of climaterelated strategy and raises business issues with the broader management team that affectthe company’s impacts with regard to climate.
Duckhorn has determined that appropriate business investment in water stewardship,
wildfire risk management, diversification of grape sourcing, energy management, carbon
reduction initiatives and the establishment of longstanding grower partnerships will
optimize climate resiliency within the company's business model. Additional information on
the identified climate-related risks and opportunities that inform Duckhorn's sustainability
strategy can be found in the Risk Management section (page 13-18) of the report.
As a public company, Duckhorn integrates formalized oversight processes which identify,
assess, and mitigate climate-related risk, culminating in a quarterly, cross-disciplinary
assessment undertaken by management to identify the most material risks affecting
Duckhorn’s business. In the Climate Risk Assessment section beginning on page 13 of thereport, the management team outlines the most salient risks to the company and selectmitigation techniques currently being deployed in response. On page 60, the management
team outlines the enterprise risk management procedures directed by the Board and Audit
Committee and executed by management.
Additionally, on page 16 Duckhorn describes the sustainable practices implemented in thevineyards to manage climate risks specific to winegrowing and viticulture.
On page 21 of the report, Duckhorn discloses scope 1 and scope 2 emissions for thecompany during the FY23 reporting, categorized across greenhouse gas types andexpressed in terms of CO2 equivalents. On pages 64-66 of the report, Duckhorn discloses
additional climate-related KPI metrics corresponding with the company’s material ESG
topics, including water consumption, packaging weight and waste generated, as well as
non-conformance rates of suppliers during social and environmental responsibility audits
conducted by Duckhorn.
Duckhorn established a inaugural set of nine ESG-specific goals in FY23. These goals
and relevant progress made against them, will be updated annually to help the Company
manage it's climate-related risks and opportunities. More information about these goals canbe found on page 10.
The Duckhorn Portfolio Responsibility and Sustainability Report70

NOTES FOR OUR READERS• All information provided by or reproducedby The Duckhorn Portfolio, Inc. (“Duckhorn
Portfolio”), including, without limitation, alltext, data, graphs, charts and, photographs(collectively, the “Information”) includedin this Responsibility and Sustainability
Report (the “ESG Report”) is the propertyof The Duckhorn Portfolio, and is provided
for informational purposes only. The
Information may not be copied, modified,
reverse-engineered, reproduced or
redisseminated in whole or in part without
prior written permission from Duckhorn
Portfolio. All rights in the Information arereserved by Duckhorn Portfolio.
• The Information may not be used to create
derivative works or to verify or correctother data or information. For example (butwithout limitation), the Information may not
be used to create advertisements, social
media content, indexes, databases, risk
models or analytics, or used in connection
with the issuing, offering, sponsoring,
managing or marketing of any securities,
portfolios or other investment vehicles
utilizing or based on, linked to, tracking orotherwise derived from the Information.

ANY IMPLIED WARRANTIES OF
ORIGINALITY, ACCURACY, TIMELINESS,NON-INFRINGEMENT, COMPLETENESS,
MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE) WITH RESPECTTO ANY OF THE INFORMATION.
• Without limiting any of the foregoing
and to the maximum extent permitted byapplicable law, in no event shall Duckhorn
Portfolio have any liability regarding anyof the Information for any direct, indirect,
special, punitive, consequential or any otherdamages.
• Information containing any historicalinformation, data or analysis should not
be taken as an indication or guarantee ofany future performance, analysis, forecast
or prediction. Past performance does notguarantee future results.
• The Information should not be reliedon and is not a substitute for the skill,
judgment and experience of the user, its
management, employees, advisors and/or clients when making investment andother business decisions. All Information isimpersonal and not tailored to the needs ofany person, entity or group of persons. This
ESG Report is not externally assured.

• Where possible, the scope of any
quantitative values is reported as well as
the associated time period that the data
represents. Unless otherwise indicated, data
represents the most recent full fiscal year,
FY23 (August 1, 2022 - July 31, 2023).

• None of the Information constitutes an offer
to sell (or a solicitation of an offer to buy),
any security, financial product or otherinvestment vehicle or any trading strategy.

• NONE OF THE INFORMATION PROVIDED
MAKES ANY EXPRESS OR IMPLIEDWARRANTIES OR REPRESENTATIONSWITH RESPECT TO THE INFORMATION,
AND TO THE MAXIMUM EXTENTPERMITTED BY APPLICABLE LAW,DUCKHORN PORTFOLIO EXPRESSLYDISCLAIMS ALL IMPLIED WARRANTIES(INCLUDING, WITHOUT LIMITATION,• For additional information about Duckhorn
Portfolio, including our Annual Report on
Form 10- K, and governance documents,
please visit our website: https://ir.duckhorn.
com/. Questions, comments, or feedback
regarding this report, or any of Duckhorn
Portfolio’s corporate responsibility
programs, should be directed tolegal@duckhorn.com.

Appendix

This ESG Report includes forwardlooking statements. These forwardlooking statements generally can be
identified by the use of words such as“anticipate,” “expect,” “plan,” “could,”“may,” “will,” “believe,” “estimate,”“forecast,” “goal,” “project,” and otherwords of similar meaning. These
forward-looking statements address
various matters including our ability
to successfully meet our ESG goalspresented in this ESG Report within
the expected timeframe. Each forwardlooking statement contained in thisESG Report is subject to risks anduncertainties that could cause actual
results to differ materially from thoseexpressed or implied by such statement.
For a discussion of some of the risks
and important factors that could affectsuch forward-looking statements, see
the section entitled “Risk Factors” in
the Company’s Annual Report on Form
10-K for the fiscal year ended July
31, 2023 and in the Company’s otherfilings with the Securities and Exchange
Commission. The Company cautions
readers not to place considerable
reliance on the forward-looking
statements contained in this ESG Report.
The forward-looking statements in thisESG Report speak only as of the dateof this document, and the Company
undertakes no obligation to updateor revise any of these statements. The
goals presented in this ESG Report
are aspirational and not guarantees
or promises that such goals will be
met. Inclusion of ESG-related or otherinformation in this report is not anindication that such information isnecessarily material to investors.

The Duckhorn Portfolio Responsibility and Sustainability Report71Three Palms Vineyard
Napa Valley, CA
Photo by: Bob McClenahan