1. Sustainability in the Chilean Wine Industry Down to Earth – New World @ Prowein Sustainability Seminar 23 rd March 2010

2. DE MARTINO: First ‘Cradle-to-retail’ CO2 neutral winery in S-America Commercial opportunity: NUEVO MUNDO CHILE: Impact of Climate Change Sustainability Management in Chilean Wine

3. 117.000 Ha (2007 SAG) 9,86 million HL (2009 SAG) Highly dependent on exports (70%)  6,93 million HL 1,38 billion USD Key driver of Chile’s country image THE CHILEAN WINE INDUSTRY

4. IMPACT OF CLIMATE CHANGE Increase in T: 1-1,5ºC until 2050; 2-4ºC until 2100

5. 30% Decline in precipitation; increase of extreme weather events IMPACT OF CLIMATE CHANGE

6. MITIGATION OF CLIMATE CHANGE IMPACTS Water Management: Irrigation Capture Storage Treatment/reuse R&D: Technological adaptation Genetic selection of heat/ drought resistant varieties Vineyard practices: Move vineyards south and to higher altitude; plague control drip irrigation harvest dates grape variety selection Public policy: Interdisciplinary task forces more studies and measurement promotion of renewable energy planning of land and water use education

7. SUSTAINABILITY MANAGEMENT: MACRO Industry Sustainability Code (2009): Benchmarking and Manual R&D consortia Vinnova Chile TechnoVid + Universities Government Program: País de Eficiencia Energética + InnovaChile CORFO

8. Chilean Wine Industry Sustainability Code (in development): Benchmarking (Vineyard, Winery/Offices, Social/local Environment) Best Practices Manual Management Tools for self-evaluation: International Protocol for GHG Calculations in the Wine Industry (International Wine Carbon Calculator) BEST Winery ISO 50001 SUSTAINABILITY MANAGEMENT

9. BEST PRACTICES IN SUSTANABILITY MANAGEMENT Organic viticulture (2500 Ha) (Sta Emiliana, De Martino, Cono Sur, a.o.) Energy Efficiency measures: Cogeneration Renewable Energies (Biomass; Solar panels; Solar Cells) Recycling / Waste reduction: Composting Light- weighting Biodegradable materials ISO 14001 CO2 Audit & Offsetting Transport (Ventisquero, Cono Sur) Cradle-to- Retail (De Martino) Water Management Waste Water Treatment Methodology (De Martino)

10. SUSTAINABILITY: THE FUTURE Economic SocialEnvironmental ISO 26000 Sustainability as a competitive advantage and driver of innovation

11. Family owned; 300 ha Organic vineyards First winery in the world to sell Carbon Credits First certified ‘cradle-to-retail’ Carbon Neutral winery in South America Best example of water management in the Chilean wine industry BEST PRACTICE : DE MARTINO

12. De Martino Sustainability Pillars Biodiversity: Organic Viticulture (2000) Natural Reserve CODEFF Water Management: Wastewater treatment (2006) Drip irrigation 3,75 ltr of water / ltr of wine Climate Change Mitigation: Waste Water Treatment Methodology (UNFCCC registered) Energy Efficiency 39% of electricity is hydro Natural gas for stationary combustion CO2 neutral export team Innovation & Education: X-treme Sustainability Project: NUEVO MUNDO Light-weighting EU filling Digital marketing Tangential filtration

13. 300 Ha BCS Ökogarantie Certified Organic (2000) DE MARTINO: Organic Viticulture

14. Biological Pest Control DE MARTINO: Organic Viticulture

15. Composting 3000 m3 DE MARTINO: Organic Viticulture Drip irrigation and cover crops

16. USD 1,5 million WWTP (UNFCCC) 58 MM ltrs  30.000 tCO2e reduction p.a.  World’s first winery to sell carbon credits DE MARTINO: Water Management/Climate Change

17. Xtreme Sustainability Project (2008) Cradle-to-retail Carbon Audit (2009) NUEVO MUNDO: First Organic and 100% Carbon Neutral Wine brand from South America: Organic terroir wines (Isla de Maipo) Minimum environmental impact Certified Carbon Neutral PET, BIB or glass DE MARTINO: Innovation & Education

18. Jacques Wein Depot (D) Dansk Supermarked (DK) Gal & Gal (NL) ………… (UK) ………… (B) … DE MARTINO: NUEVO MUNDO

19. 2010: ALL De Martino wines certified CO2 Neutral (Carbon Reduction Institute) DE MARTINO: First Carbon Neutral Winery in South America