Sustainability Initiatives in the Global Wine Industry

Ann Thrupp, Fetzer and CSWA

With information from Karen Ross,

CA Association of Winegrape Growers

Sustainability : A broad concept, often viewed as a

goal Sometimes called the “Triple Bottom

Line”

Economically

Viable

Environmentally sound

SustainabilitySustainability

Socially Socially Responsible Responsible

Ensuring viability over time…benefiting current & future generations

Concepts of Sustainable & Organic

Agriculture

Conventional IPM Biointensive IPM Organic Biodynamic

UNSUSTAINABLE S U S T A I N A B L E ORGANIC & BEYOND

Some people perceive these concepts on a linear continuum…

However, this linear perspective is somewhat narrow.

An alternative view reveals more complexity …

The Sustainability Concept

Relationships between Organic & Sustainable Agriculture & Other

Concepts

Sustainable

Agriculture Organic

Biodynamic

Integrated Pest/Crop Management

“Sustainable” winegrowing is a

much broader concept, which includes many dimensions (to be explained)

Interest in Sustainability: Growing Global Trend

• Global & local challenges: Environmental degradation, climate change, resource scarcity, pollution, health threats, population growth, urbanization, etc.

• Growing involvement in sustainable development & sustainable agriculture among governments

• Growing investment in sustainable business and in manufacturing, food/ag, service, energy, transport, and other sectors; many involved in certification and labeling

- Pioneers like Ben & Jerry’s, Body Shop, Interface, etc. - Multinat’l corporations also jumping on the green bandwagon… such as Starbucks, Dole, Nestle, Unilever, Walmart, MacDonalds, Toyota, Ford, Hitachi, GM, BP, etc…

MANY FAMILIAR BRANDS & COMPANIES

GOING “GREEN”….

SUSTAINABILITYINCREASING

IN IMPORTANCE

SUSTAINABILITYINCREASING

IN IMPORTANCE

GOVERNMENTS

GOVERNMENTS

SOCIAL AND ENVIRONMENTALCHALLENGES &

ROLE OF NGOs

SOCIAL AND ENVIRONMENTALCHALLENGES &

ROLE OF NGOs

CONSUMERS CONSUMERS

COMPETITIONCOMPETITION

INVESTORS &

ANALYSTS

INVESTORS &

ANALYSTSEMPLOYEESEMPLOYEES

Why? Multiple Forces Behind ChangeWhy? Multiple Forces Behind Change

Sustainability Initiatives In the International Wine

Industry • Australia’s “Sustaining Success” Australia’s “Sustaining Success” Strategy Strategy

• New Zealand Winegrowing Program New Zealand Winegrowing Program

• South Africa’s Integrated Production South Africa’s Integrated Production of Wine System (IPW) of Wine System (IPW)

• European Programs on SustainabilityEuropean Programs on Sustainability

• U.S. Initiatives – Especially the CA U.S. Initiatives – Especially the CA Sustainable Winegrowing Program Sustainable Winegrowing Program

• FIVS (international wine industry FIVS (international wine industry trade association) also recognizes trade association) also recognizes sustainability principlessustainability principles

Australia’s“Sustaining Success” Strategy

• Cooperative Research Centre of Viticulture (CRCV)– R&D Organization established in 1992

– Programs include:• Sustainable Vineyard Systems

• An Education Program

• Viticare Program for Extension & Research• Drafting chapters on soil, pest, and water management best practices

Australia’s“Sustaining Success” Strategy

• Environmental Management System (EMS) Program includes:

– Water Use Management – Chemical & Pesticide Management– Soil & Fertilizer Management– Equipment, Vehicle & Machinery– Waste Management – Vineyard Establishment– Biodiversity

• Gov’t funding to support research on sustainable viticulture practices ($4.5 M)

New Zealand Winegrowing Program

• In 1995-1996, a working group of growers and industry representatives developed a pilot “Integrated Winegrowing Program”

– Began with 5 vineyards

– In 1997, after receiving a $150,000 & additional support, program grew to include 120 vineyards

– In 2003, more than 300 members representing 60% of the vineyard acreage

New Zealand Winegrowing Program

“Integrated Winegrowing Program”

– Positive Points System for vineyards & wineries

– Self Audit Scorecard – reports for participants

– 77 Questions •Negative Impact or Unsustainable

Scores 0 to -10 Points

•Sustainable Practice Scores 10 Points

•Improvement over current practice Scores +10 to +20

South Africa’s Integrated Production of Wine System

• IPW Programs for both grapes and wine (multiple practices for vineyards and winery operations)

• Certification Program & training program• Points System • 99% of South Africa’s wine production participates in the program

South Africa also has a strong program to promote biodiversity in vineyards

European Programs on Sustainability

Many Regional Programs – examples Many Regional Programs – examples include:include:

• European Integrated Production European Integrated Production (IP) Standards(IP) Standards

• Viticulture Raisone’e in Viticulture Raisone’e in Champagne Champagne Goals include:Goals include:

– Participation of 15,000 farmers in regionParticipation of 15,000 farmers in region

– Reduction in use of chemical fertilizers, Reduction in use of chemical fertilizers, pesticides & fungicides by 50%pesticides & fungicides by 50%

Sustainable Winegrowing

Initiatives in California

• Strong Initiatives in the Winegrape industry to promote & expand sustainable practices – Regional: CCVT, LWWC, SCGGA, NSWG, etc.

• State: Code of Sustainable Practices – Initiated by CAWG, WI, CSWA, collaborating

regional groups, wineries and vineyards – Self-evaluation and education aimed to

encourage adoption of a wide diversity of sustainable practices

– Results: high level of participation in the SWP, increasing adoption of sustainable practices

Centerpiece of the SWP – The Workbook ** Release of – Second Edition of the “Code of

Sustainable Winegrowing Practices” **

Practices Included in the “Code of Sustainable Winegrowing Practices” for Vineyards & Wineries

From Ground to Glass” – Total of 227 criteria • Viticulture • Soil Management • Vineyard Water

Management • Pest Management • Wine Quality • Ecosystem

Management • Energy Efficiency

• Winery Water Conser-vation & Quality

• Material Handling• Solid Waste Reduction• Environmentally

preferred purchasing• Human Resources • Neighbors & Community • Air Quality added in ‘06

Self AssessSelf Assess

Interpret Interpret PerformancePerformance

Develop Action Develop Action Plan to ImprovePlan to Improve

Implement Implement ChangeChange

SWP Cycle of SWP Cycle of Continuous Continuous

ImprovementImprovement

Targeted Education WorkshopsAction Plan

Customized Reports

Self-Assessment workshops

Growing Participation in SWP Self-Assessment

• 1,165 wineries & vineyards have attended close to 100 SWP self-assessment workshops from 2002 to now.

• These participants represent: 33% of total CA vineyard area (over 171,000 acres) 53% of case value of CA wine (143.8 million cases)

These numbers demonstrate, since 2004:

• 24% increase in the number of participants • 23% increase in vineyard acreage • 19% increase in wine case production

Targeted Education Workshops

• Since 2004, SWP has held 88 educational events that target areas in need of improvement

• These workshops have reached over 5,000 growers and vintners

• They cover many sustainable practices, e.g:– Integrated Pest Management– Air and Water Quality– Ecosystem Management, and – Energy Efficiency

Interest in California SWP from other Winegrape Associations

• Washington State Association of Washington State Association of

Winegrape GrowersWinegrape Growers

• Oregon Wine Advisory BoardOregon Wine Advisory Board

• New York Wine & Grape FoundationNew York Wine & Grape Foundation

• Penn State Cooperation ExtensionPenn State Cooperation Extension

• Canadian Vintners AssociationCanadian Vintners Association

• Wine Council of OntarioWine Council of Ontario

Certification & Ecolabel Initiatives for “Sustainable” Winegrowing

• Organic and Biodynamic – 3rd party certification

• Salmon Safe – 3rd party certification of BMPs & environmental practices, and has label (mainly in Oregon)

• Oregon LIVE – sets standards; collaboration with Salmon Safe

• The Food Alliance – has vineyard standards, not on wine labels

• Napa Green – certification of BMPs for vineyards, but no label

• Sonoma Green Business- sets standards; 51 wineries certified

• Fish-Friendly Farming program (no label)

New Certification Initiatives (related to winegrowing)

• CA Winegrowers Regions have become involved in developing ecolabel or certification initiatives – LWWC (“Lodi Rules”), CCVT

• Individual wineries: eg, Gallo of Sonoma Sustainable Management Systems “Certification” (WPS, ISO-14001); Benziger developing standards for its growers; others considering ideas too?

• Protected Harvest: Working with CA commodities and growers to certify, label and market produce grown according to sustainable ag standards

Lessons Learned: What makes the SWP Lessons Learned: What makes the SWP unique and effective? (Key Elements)unique and effective? (Key Elements)

• Active participation of growers & vintners, and many stakeholders, in all parts of the program.

• Comprehensive in scope: The SWP addresses three interlinked environmental, economic and equity goals; using a systems approach:

• Building bridges – between environmental and agricultural interests –win-win solutions.

• Innovative measurement system- transparent reporting of the results to the public.

• Marketing advantage.

• Setting a good example, serving as a model globally for socially responsible wine production

THANK YOU!

Contact InformationAnn Thrupp,

Manager of Sustainability, Fetzer Vineyards & consultant, CA Sustainable Winegrowing Alliance

tel 707-272-1152, www.sustainablewinegrowing.org

And Karen Ross,

CA Association of Winegrape Growers

www.cawg.org