Ron Morrison
Assume that your winery is among the many small and medium sized enterprises (SMEs) in the business and has an interest in sustainability. Perhaps you have already undertaken several related environmental or social initiatives. As a small business owner you know there may be a need to better understand what’s behind all the talk on sustainability, but with limited time and resources available, it’s simply not at the top of your agenda.
Annual corporate reporting with its focus on financial performance has been around for years in the business world. More recently, sustainability reporting on the environmental, social and economic aspects of a business has evolved as an innovation which improves business performance and demonstrates a commitment to sustainability for investors and customers.
Sustainability reporting is about crafting your story on value creation - value in the wine produced, socio-economic value contributing to jobs and local communities, and environmental value in reducing carbon emissions and conserving resources upon which producing your wine is dependent. The shift in business culture is predicated on resource optimization and cost savings, social and environmental values.
Over the past decade sustainability reporting has been adopted as common practice among larger corporations, but is beginning to gain traction among SMEs. They account for 99 percent of Canada’s businesses and more than half of our gross domestic product. They also represent the majority of companies in our wine industry, are agile and often ready to embrace the innovation, communication and accountability trends underlying sustainability reporting.
The reporting process enables wineries to enhance their competitiveness by introducing, improving and reporting on sustainability initiatives in their operations. It presents a fascinating business challenge for wineries and an opportunity to frame their operations and wine produced in a light that attracts consumers. Reporting is particularly relevant to wineries that may already be advanced in sustainability, but are looking to up their game in the marketplace.
Value of Sustainability Reporting
While basic wine production can be a straightforward endeavour, the business landscape in the industry is becoming more complex. With strong consumer preference toward social and environmental standards, sustainability reporting lends a considerable competitive advantage. Social media and internet communication have changed the way consumers make choices. Purchasing decisions are becoming more informed and no longer based only on quality and price. Customers are seeking value added from social and environmental interests. They are looking at internet sites for information on how companies operate. They are reading labels in stores and are driving new business practices.
There's no better example than the recent move by the Earl’s chain of restaurants to source all of its beef supplies from producers certified in meeting standards for beef raised under humane practices. Whether it’s certified humane beef, free range egg production or fair trade coffee supply, the market is dramatically and rapidly changing according to consumer values.
Certification of sustainable wine in California with more than 70% industry participation in the Sustainable Winegrowing Program is another example. Similarly in Ontario, sustainably certified wineries are becoming popular under the Sustainability Certification Program of Wine Council of Ontario and the Grape Growers of Ontario. Customers are increasingly attracted to the products of companies with sustainability communicated as integral to their business strategy, values and mission.
Reporting on non-financial values of winery operations is a novel idea. However, it offers an opportunity for thinking about how companies can act not only in their own best interests, but also add value for the growing social and environmental concerns of their customers. Additional benefits are the promotion of innovation and operations efficiency, resource conservation, better financial performance, regulatory compliance, reduced carbon and environmental footprints, company reputation and differentiation.
In presenting a sustainability profile, reporting enables a business to demonstrate its commitment to operating responsibly with interests that integrate social and environmental values. As such, it can be a great branding and marketing tool that can help grow the business.
Guidelines, Process and Approach
The Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI) represent the most widely followed sustainability reporting standard in the world. They can be used as a reference to develop your sustainability report and can generate relevant and standardized information on the sustainability impacts and performance of your winery.
Ready to report? Preparation involves identifying the target audience, who will prepare the report, how it will be prepared, information and resources required, issues to be considered and a timeframe for completion. Collecting input from stakeholders and information assembly are the next steps. The potentially relevant sustainability issues or material aspects in what really matters to your company then define the content. Assessing impacts, identifying targets, actions and timelines to achieve the targets, writing and publishing the report follow.
A graduated approach can make the process easier when starting. It may result in a simple report with a limited number of material indicators on your operation. Small companies may retain outside expertise to support them through and facilitate the process. Gathering and interpreting the relevant information, preparation and publication of the report are the main cost factors. Still, getting started in reporting can be relatively easy and less costly than often thought.
The style and format of the report can be a small poster, a single page or series of pages on a company website, or a formal printed document. For larger and more advanced companies, there is a variety of software on the market that follow guidelines such as GRI, and can assist in presenting data and managing the reporting process.
Getting Started and Structure
In starting out, it is necessary to clearly define the most important issues affecting the sustainability of your company’s business and its future growth, decide what to measure and who will be involved, and how the report will be resourced. A clearly structured, concise and well-presented report is most likely to generate the greatest return on investment.
The first part of the report describes your company’s vision, mission and values in terms of the business and sustainability. It should outline your overall goals and how they are achieved. It’s about how your company carries out its business, with particular reference to commitment and initiatives in sustainability.
In the second part of the report, the specific aspects of resource and energy conservation, environmental effects of your operations, waste management and recycling, supply chains and transportation, your workplace and community involvement are described from a baseline created by an assessment or snap shot in time of the business.
At the end of the reporting process, take pride in and broadcast your sustainability message, connect with customers, tell your story and raise your glass to sustainable wine making and a more environmentally friendly business culture. Cheers. ■
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