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 Sustainability Socially Responsible Socially 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”….

SUSTAINABILITY INCREASING IN IMPORTANCE GOVERNMENTS SOCIAL AND ENVIRONMENTAL CHALLENGES & ROLE OF NGOs CONSUMERS COMPETITION INVESTORS & ANALYSTS EMPLOYEES Why? Multiple Forces Behind Change Why? Multiple Forces Behind Change

Sustainability Initiatives In the International Wine Industry Australia’s “Sustaining Success” StrategyAustralia’s “Sustaining Success” Strategy New Zealand Winegrowing ProgramNew Zealand Winegrowing Program South Africa’s Integrated Production of Wine System (IPW)South Africa’s Integrated Production of Wine System (IPW) European Programs on SustainabilityEuropean Programs on Sustainability U.S. Initiatives – Especially the CA Sustainable Winegrowing ProgramU.S. Initiatives – Especially the CA Sustainable Winegrowing Program FIVS (international wine industry trade association) also recognizes sustainability principlesFIVS (international wine industry trade association) also recognizes sustainability 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 , 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 include: European Integrated Production (IP) StandardsEuropean Integrated Production (IP) Standards Viticulture Raisone’e in Champagne Goals include: Viticulture Raisone’e in Champagne Goals include: –Participation of 15,000 farmers in region – Reduction in use of chemical fertilizers, 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 Assess Interpret Performance Develop Action Plan to Improve Implement Change SWP Cycle of Continuous Improvement Targeted Education Workshops Action 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 Winegrape Growers Washington State Association of Winegrape Growers Oregon Wine Advisory Board Oregon Wine Advisory Board New York Wine & Grape Foundation New York Wine & Grape Foundation Penn State Cooperation Extension Penn State Cooperation Extension Canadian Vintners Association Canadian Vintners Association Wine Council of Ontario Wine Council of Ontario

Certification & Ecolabel Initiatives for “Sustainable” Winegrowing Organic and Biodynamic – 3 rd party certification Salmon Safe – 3 rd 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 ); 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 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 Information Ann Thrupp, Manager of Sustainability, Fetzer Vineyards & consultant, CA Sustainable Winegrowing Alliance tel , And Karen Ross, CA Association of Winegrape Growers