Sustainability, in the wine business, as with most other industries, is a timely and exciting wave that is changing the business world, turning challenges into opportunities. Cost savings, environmental benefits, consumer demand and brand distinction are the drivers. The new business model is about progressive management that creates shared financial, environmental and social value. Wineries adopting sustainability practices have discovered innovative operational efficiencies and become greener, enabling increased market share and reach.
Water, soils, energy and carbon emissions, chemicals, biodiversity, wildlife, materials, waste, transportation and market competition are all issues of sustainability in producing wine. As its understanding increases, it has gained acceptance in practice, influenced by performance goals, consumer preferences and market opportunities. Sustainability usually implies some level of change in the approach to management, production and marketing processes. This kind of change has been well embraced in other wine producing regions of the world, such as Europe and California.
Market research has shown that the more sustainable a brand is perceived, the more meaningful it becomes to consumers and the more they are attracted to it. In California, one consumer survey indicated that 90% of respondents felt that sustainability practices were an important feature of wine production, influencing their choice of purchases from such producers.
Further evidence of this branding is bottle labelling, reporting, verification and certification that demonstrate sustainability practices. From a business perspective, consumer preference for sustainably produced products is beginning to translate into greater market demand, which lends promise to level the playing field for our Canadian industry.
Breaking New Ground in the Wine Industry
A better understanding of the challenges and opportunities related to land, water and climate can be achieved through sustainability. Significant amounts of water for example, are required for irrigation and processing in wine production. The annual average precipitation of semi-arid regions like the Okanagan can be used entirely by some vineyards in a single growing season. Meanwhile, emerging legislation presents a further constraint. With the new BC Water Sustainability Act, industry will see new rules on groundwater, mandatory reporting on water use and increased levies.
Responding to these dynamics, the House of Rose Winery started out in sustainability through remediation of their vineyard soils, following years of chemical fertilizer and herbicide use. From soils nutrient and compost additions, to energy required for maintaining their winery building at a constant temperature, to waste recycling and supply chain considerations, a series of environmental benefits has been realized in their initiatives.
Another leading example is Tinhorn Creek Vineyards, which refers to sustainability as the ‘it’ word of the century. In addition to protecting sensitive areas and reintroducing natural species, along with a drip irrigation project that has resulted in vine growth, grape quality and water savings, Tinhorn Creek has become Canada’s first carbon-neutral winery through its progressive reductions in greenhouse gas emissions.
Pathways to Sustainability
There are significant opportunities to advance sustainability. So where do we start and how do we get there? At the outset, it is important to develop a clear understanding of sustainability and its aspirations. A few key questions are:
- What does sustainability mean to our operation and what is our level of commitment?
- What are the known issues and/or gaps, and are there practices already initiated?
- How do we develop a strategy or system for incorporating sustainability in our business?
Small is beautiful. Take baby steps and look for some quick wins with small projects. Focus on opportunities offered by initiatives that can be built upon into a larger program. Sustainability does not have to be undertaken all at once, but there should be a bigger picture, long term outlook. Think also about integration, beyond ad-hoc approaches. An initial assessment to establish an overall baseline should be considered in the beginning.
Limited internal capacity is often cited as a challenge to tackling sustainability head-on. There are many excellent external resources to support starting out. The BC Sustainable Winegrowing Program offers one starting point to initiate a program or build upon already existing initiatives. Developed through the BC Wine Grape Council, it is organized into separate vineyard, winery and winery hospitality components. It provides a comprehensive framework from which to select and work through different elements.
Building sustainability into an operation requires a combination of expertise and a customized plan including an effective implementation strategy. Resulting programs tailored to individual enterprises, as well as branding and reporting can reap considerable business benefits. With ever growing consumer interest and more wineries responding, industry will begin to kick start implementation of sustainability as standard practice to create more competitive and green businesses.
Ronald Morrison, MES, MCIP, RPP is President of Sustainability North Inc., a consultancy and advisory practice specializing in corporate sustainability, regulatory affairs and environmental planning. www.sustainabilitynorth.ca