1. Viticulture – Global trends presentation Site / company name and logo here Presenter/s names here This is an Agrifood Skills Australia Ltd project developed in partnership with Energetics Pty Ltd and funded by the Australian Government under the Clean Energy and Other Skills Package

2. Ecosytem interactions © Energetics Pty Ltd, Holt et al

3. Major trends in the Wine Sector Growth: stagnant domestically, declining overseas, rising international competition locally Market: volatile export markets, high Australian dollar, supermarkets influence, oversupply of grapes and wine Customer: consumer preferences changing Sustainability Compliance & Labelling – GHG reporting (e.g. Carbon Disclosure, GRI), international enviro labelling

4. Drivers for action by business Cost: rising for energy, water, carbon Competition: Influx of South American wines, tighter margins, green differentiation and niche marketing (organic, carbon neutral) Compliance: increasing regulatory burden as Governments seek to overcome market failures to act – water and energy Community expectation: brand reputation Customer: supply chain pressures to reduce price and report environmental performance

5. Australian energy and water trends, policy and legislation

6. Water programs / initiatives Improving Water Efficiency Water ManagementAlternate Water Supplies EREP Environment and Resource Efficiency Plans Catchment planning Murray-Darling Basin plans Irrigation & water licensing: extraction, storage Water re-use / recycling Harvesting Water trading schemes WSAP Water Savings Action Plan WaterMAP Water Efficiency Plans Sustainability Advantage NSW voluntary program Desalination WEMPS Water Efficiency Management Plans National Water Initiative ($12 bn) Water discharge quality e.g. EPA license requirements and/or run-off Stormwater management Flow attenuation, mitigation

7. Energy programs / initiatives Improving Energy Efficiency Reducing Greenhouse Gas & Carbon Emissions Increasing Renewable Energy EEO Energy Efficiency Opportunity Act (large corporations) Voluntary Greenhouse reduction programs NGER National Greenhouse & Energy Reporting Act RET Renewable energy targets (Large RES and Small RES) Voluntary Green Power Carbon Price and Trading, carbon farming initiative State Energy Efficiency programs e.g. VEET, ESS, EREP, Sustainability Advantage, SESP State renewable energy targets Clean Energy Future initiatives for Business – e.g. Clean Technology Food and Foundries Investment Program Industry voluntary environmental / sustainability assurance – e.g. entwine australia

8. Given these trends and energy / water management drivers, how should your business plan to respond?

9. Identify business initiatives & plans Identify the initiatives that your business is doing / planning that align with economic, social and environmental performance goals – List business initiatives – Map these onto a Venn diagram – Where do they fit? (provides basis for understanding business approach, defining your current approach, and starting to highlight gaps in your systems that you may want to close)

10. Economic Social Environmental For example Water / energy efficiency target Staff newsletter EBIT target Production volume increase 3-year business plan Parental leave policies Drip irrigation at night Work-life balance Community clean up campaigns Green skills development GHG reporting Organic wines Water use license

11. Timeframe of thinking Compliant Reactive Proactive Innovator Now Long-Term Sophistication of thinking about sustainability impacts LowHigh Denial Industry development is driven by relative impacts of Government Policy, Industry Innovation and Social Conscience Organisations will develop at different speeds and early movers will create sustainable competitive advantage Industry & organisational evolution – where do you want to be in future? Three questions: 1.Looking at current plans v trends / drivers where are you positioned now? 2.How do current trends and drivers affect you? 3.Given these, where do you want to be positioned?

12. Economic Social Environmental

13. Timeframe of thinking Compliant Reactive Proactive Innovator Now Long-Term Sophistication of thinking about climate change impacts LowHigh Denial Given trends globally and in energy / water management, how should my business plan to respond? Three questions: 1.Looking at current plans v trends / drivers where is my business positioned now? 2.How do current trends and drivers affect me? 3.Given these, where do I want to be positioned?

14. Consolidating the trends and your plans and position…. The previous activities define the endpoints for: – Business maturity This defines where you want to be against your competitors – Positioning This defines how you want to achieve your goals – Combining your review of trends, assessment of your plans, position and desired future positioning, you are now in a position to assess your risks and opportunities for getting there, and to develop your vision and plans for how to get there.