1. June 8th, 2015 Liesl Eichler Clark Principal, 5 Lakes Energy lclark@5lakesenergy.com Michigan Wine Sustainability Initiative

2. Why a sustainability program? 2 www.5lakesenergy.com Wineries and growers are good stewards of the land – including water use, environmental practices and energy use.

3. Why 5 Lakes? 3 5 Lakes Energy is a Michigan-based policy consulting firm offering services in clean energy and the environment to the public and private sector. We provide the strategic pathways that enable and accelerate adoption of clean energy technologies and sustainable practices. www.5lakesenergy.com Who are we?

4. Why a sustainability program? 4 A Michigan sustainability program: will support the message of local growing and local value. That local focus also connects with protection of the water and the environment around us. will support the bottom line. Decreasing energy use and increasing efficiency in water and energy use reduces waste and saves money. will build the Michigan wine brand and will help wineries communicate with consumers. There is retail/consumer demand for green practices – like the Wal-Mart sustainability initiative. The Michigan industry building it’s own program will support the wineries and growers responding to these demands and those of the MI Department of Environmental Quality. Sustainability programs are often industry initiated and serve as a source of education to growers and wineries to support continual improvement. www.5lakesenergy.com

5. 5 Survey Michigan Wineries and Growers Inventory Sustainability Programs Compile Possible Formats for MI Program

6. 6 www.5lakesenergy.com Survey Michigan Wineries and Growers Roundtables Industry events Online Survey – 65 responses Webinars MI Grape & Wine Conference 250+ contacts

7. www.5lakesenergy.com

8. 8 Survey Michigan Wineries and Growers Inventory Sustainability Programs Compile Possible Formats for MI Program

9. 9 California Sustainable Winegrowing Alliance (CSWA) Chile Sustainable Wine Lodi Rules for Sustainable Winegrowing Long Island Sustainable Winegrowing Low Input Viticulture and Enology (LIVE) Napa Green South Africa Integrity and Sustainability Certified Sustainability in Practice (SIP) Sustainable Australia Winegrowing Sustainable Winegrowing New Zealand VineBalance (NY) WineryWise (WA) VineWise (WA) Virginia Sustainable Viticulture Program And more! www.5lakesenergy.com

10. 10 Started in 1992 by the Lodi Winegrape Commission (LWC) The Lodi Rules for Sustainable Winegrowing endorsed by Protected Harvest in 2002 Workbook- 101 best practices in 6 chapters: Business Management, Human Resources, Ecosystem Management, Soil Management, Water Management, and Pest Management Over 20,000 acres have been “Certified Green” in Lodi AVA and 6,000 acres around the state 20 Wineries produce wine bearing the “Certified Green” seal www.5lakesenergy.com

11. 11 501(c)3 Non-Profit founded in 1999 by a group of growers Provides educational resources, and acts as an independent 3 rd party certifier of vineyards and wineries Standards endorsed by the International Organization for Biological and Integrated Control of Noxious Animals and Plants (IOBC) Certified Members: 274 Vineyards, 31 Wineries = 10,417 vineyard acres and 1,323,575 cases of wine produced by certified wineries www.5lakesenergy.com

12. Research trips to California, Washington, and Oregon

13. Market Demand 13 2013 research by Wine Institute & PE International on consumer and retail interest in sustainability Consumers  34% of wine consumers across all segments consider environmental/sustainable attributes when making wine purchases  66% said they identify these eco-friendly attributes at the point of purchase via labels and in-store information Retail/Trade  37% sustainable attributes were frequently or very frequently a factor in wine selection  Communication: sustainability certification programs are helpful (71%) as are seals on bottles (81%) www.5lakesenergy.com

14. 14 www.5lakesenergy.com Survey Michigan Wineries and Growers Inventory Sustainability Programs Compile Possible Formats for MI Program

15. Free and voluntary assessment of operations to determine level of sustainability Identify areas for improvement Access educational resources, and permit information Create action plans to reach goals Run comparison reports by operation size, region, or statewide Employee engagement through action plans or conservation plans First step toward 3 rd party certification 15 www.5lakesenergy.com

16. Benefits Increase operational efficiency Reduce natural resource use Decreased costs Measurable benefits to communicate to stakeholders Connect practices with performance Topics-CSWA tool developed by SureHarvest Energy use (vineyards and wineries) Water use (vineyards and wineries) Greenhouse Gas Emission (vineyards and wineries) Nitrogen use (vineyards) “You can’t manage what you don’t measure” 16 www.5lakesenergy.com

17. Process Meet pre-requisite standards identified in self-assessment 3rd Party Audit Associated costs Follow-up audit (1 year, 3 year) Multi-Certification Option Benefits Transparency Brand Identity Marketing/Promotion Market competitiveness 17 www.5lakesenergy.com

18. A way forward 18 www.5lakesenergy.com MAEAP – Environm ental Module Energy Use Water Use

19. A way forward Grant Funding  USDA Specialty Crop Block Grants (WineryWise), NRCS, REAP Collaboration  MAEAP, MSU Extension, Trade Association, Existing Programs Industry Supported  Industry assessment like check-off 19 www.5lakesenergy.com

20. Why a sustainability program? 20 A Michigan sustainability program: will support the message of local growing and local value. That local focus also connects with protection of the water and the environment around us. will support the bottom line. Decreasing energy use and increasing efficiency in water and energy use reduces waste and saves money. will build the Michigan wine brand and will help wineries communicate with consumers. There is retail/consumer demand for green practices – like the Wal-Mart sustainability initiative. The Michigan industry building it’s own program will support the wineries and growers responding to these demands and those of the MI Department of Environmental Quality. Sustainability programs are often industry initiated and serve as a source of education to growers and wineries to support continual improvement. www.5lakesenergy.com

21. Want to learn more? 21 www.5lakesenergy.com

22. Application to other industries… 22 www.5lakesenergy.com Sustainability Recycling Social Responsibility Quality Management Water Use and Conservation Energy Use and Conservation Environmental Management Risk Management

23. www.5lakesenergy.com 23 Cam Brown cbrown@5lakesenergy.com 231-631-1935 Liesl Clark lclark@5lakesenergy.com 517-243-2860 Jamie Scripps jscripps@5lakesenergy.com 517-897-4649

24. www.5lakesenergy.com 24