NAPA GREEN CERTIFIED - WHAT IT MEANS

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1 NAPA GREEN CERTIFIED - WHAT IT MEANS This program is about quality - this program is about creating a quality wine, creating a quality environment for your staff, for your community, creating a quality environment for my kids and everyone else s children. -Michael Honig, President, Honig Vineyards

2 Do you appreciate a healthy and thriving Napa River full of Chinook salmon, steelhead trout, beavers, and attracting falcons and kingfishers? Are you proud to be part of a conscientious business that prioritizes environmental stewardship and healthy and happy employees and neighbors? Does it feel good to work in partnership to find new ways to do tasks like clean tanks and wash barrels, saving timing, using less energy and water, and knowing your actions have impact? Do you like to save money and cut production costs? Do you enjoy sharing unique, authentic stories? Like solar arrays that double as parking shade; sheep that serve as natural lawn mowers; staff tailgates that generate ideas that end up cutting water use by 25% over just two years. Do you enjoy peace of mind knowing your company is in environmental compliance and going beyond compliance, reducing risk and ensuring business longevity? This is Napa Green Certified Land and Winery, validating rigorous soil-to-bottle standards for sustainable grape growing and winemaking. Our Mission is to have all winery and vineyard owners participating in the Napa Green Certified Land and/or Winery programs by 2020: Contributing to the health and preservation of the Napa River watershed; Making our community, our Napa Valley, stronger and more resilient; Taking pride in being leaders proving sustainability is synonymous with business success. Key Attributes of Napa Green Certified Winery: Wineries implement a minimum of 100 sustainability and environmental stewardship practices to: Save energy and increase energy efficiency Conserve water and increase water use efficiency Reduce waste through recycling, composting and environmentally preferable purchasing Drawdown GHG emissions and the winery s carbon footprint Key Attributes of Napa Green Certified Land: Third-party vineyard certification involves developing a custom, whole-farm conservation plan focused on: Reducing erosion and sediment runoff Identifying and reducing harmful inputs Conserving water resources Protecting and restoring riparian habitat Ensuring healthy employees and happy neighbors The whole facility is certified from production, to administration, to hospitality

3 LEVERAGING YOUR NAPA GREEN CERTIFICATION Are You Leveraging Your Napa Green Sustainability Certification? An increasing number of studies shows both consumers and trade value sustainability and environmental stewardship and use this information in their wine purchasing and sales decisions. Today, we find the end consumer has a greater degree of interest in knowing that the wine they buy is both grown and produced in a sustainable manner. For our 2016 vintage, we have added the Napa Green logo to our back label to help convey that message. - Bruce Cakebread, President and CEO of Cakebread Cellars Sustainability can help differentiate your wine and serve as a tiebreaker on the shelf. In one of their key Canadian markets, Jackson Family Wines recently tested the correlation between advertising their environmental commitment and sales. The result? A 19 percent sales increase simply by using bottleneckers with sustainability information. A 2017 study from Cone Communications offers additional support: of 1,000 U.S. consumers surveyed, 89 percent said they would switch to a brand associated with a good cause given similar price and quality. When a company supports a social or environmental issue, 92 percent of consumers say they have a more positive image of the company; 87 percent are more likely to trust the company; and 88 percent say they would be more loyal to the company Cone Communications CSR Study

4 In 2016, Wine Opinions surveyed 457 retailers, wholesalers, distributors and importers. More than 70 percent said that sustainable practices often or sometimes served as a factor in choosing a wine to market or sell to customers. When asked why, 72 percent said there is increased demand for sustainably produced wines; 71 percent said they personally care about sustainable or environmental attributes of wines; and 67 percent said sustainable production is a useful selling feature or attribute of the wine. One of the main benefits of Napa Green certification is the opportunity to have a new conversation with consumers. Many wineries have similar stories about unique soils, vineyard microclimates, terroir. Napa Green certification provides new positioning, new engagement, new stories for visitors that can help a winery standout and serve as an added incentive to join the wine club. - John Garn, Sustainability Consultant, ViewCraft There is also growing evidence that wine consumers are willing to pay a premium for sustainable products. A 2015 Nielsen Global CSR study found that more than 70 percent of millennials and 50 percent of baby boomers were willing to pay more for a socially or environmentally responsible product. In 2017, Sonoma State University surveyed 300 wine consumers and the majority indicated they would pay $1-3 more for a bottle of certified sustainable, organic or Biodynamic wine. Notably, economists at Washington State University recently analyzed 45,000 red wine ratings by Wine Spectator from 1989 to 2014 and found that Napa Green certified wines demanded a price premium of $4.40 a bottle. Underselling Sustainability Consumers can t respond to information they don t have. The 2017 Cone Communications study notes, Although consumers unequivocally stand ready to reward companies for their responsibility efforts, they need to hear about it first. The 2016 Wine Opinions trade survey found that the top obstacles to selling more sustainably produced wines were lack of understanding and familiarity by consumers and wines are hard to identify or not clearly labeled. Meanwhile, respondents said the most effective way to promote certification was through clear and highly visible labeling or identification on the wine. Certified members of the Napa Green program can use the Napa Green Winery logo on the labels of wines made in certified wineries, and can use the Napa Green Land logo if 95 percent of the grapes in the bottle were grown in Napa Green certified vineyards.

SHARE YOUR SUSTAINABILITY STORY We are very proud to have comprehensive Napa Green

We display the logos on the back of all our bottles and incorporate sustainability

At every tasting I m at people ask, What does Napa Green mean?

certification. It s important to people. -Brooke Shenk, Winemaker, St.

5 SHARE YOUR SUSTAINABILITY STORY We are very proud to have comprehensive Napa Green Land and Winery certification. We display the logos on the back of all our bottles and incorporate sustainability in every presentation we give on St. Supery. At every tasting I m at people ask, What does Napa Green mean? They ask specific questions and they want to know about the third-party certification. It s important to people. -Brooke Shenk, Winemaker, St. Supery Estate Vineyards & Winery IDEAS TO SHARE YOUR SUSTAINABILITY STORY Chateau Montelena video Our Commitment to Sustainability Honig Vineyard & Winery Eco Tour and Tasting ZD Wines Eco Vineyard Tour and Wine Tasting

6 As part of their Open House in April 2018 Cain Vineyard & Winery is offering a Sustainability Seminar Chris describes sustainability as a journey and not a destination, so bring your boots! Morning in the Winery and Afternoon in the Vineyards STORYTELLING > FACTS The Art of Wine Storytelling Meininger s Wine Business International, 22 Feb 2017 Dr. Jennifer Aaker from the Stanford Graduate School of Business, has said that stories are up to 22 times more memorable than facts alone. This suggests that storytelling should be an easy win for the wine industry. After all, wine comes out of risk-taking, farming, history and interesting people. But there are two catches. The first is that it s not just the story that s important, it s the way it s told. The second catch is that the wine trade is deeply averse to telling stories in the way that are most likely to attract attention. The story must have five key elements: an inciting moment, a complication, a climax (or turning point), a reversal, and then a resounding finish. Somebody gets into trouble, gets out of it again. People love that story. They never get sick of it. -Kurt Vonnegut Structurally it s what s called a rise-fall-rise, or Cinderella, story Biodynamic winegrowers often tell a similar tale: one day they realised their soil and/or vineyard was lifeless, so they converted to biodynamic methods, and now their vineyard flourishes and their wines are better. It s the age-old rags-to-riches story and it s powerful. A story must have emotional highs and lows A good story needs poignant, frightening, or nail-biting elements if it s to provoke cortisol, the hormone that focuses attention. If the story doesn t have both light and shade, it s doomed to be forgotten.

7 How to Tell a Good Story Kristi Hedges, Forbes, 11 Dec 2013 A Stanford research study showed that statistics alone have a retention rate of 5-10%, but when coupled with anecdotes, the retention rate rises to 65-70%. We re enraptured by stories that involve some vulnerability. We want to hear about struggles, and how to overcome them so be honest. When you share stories, be revealing about the hurdles along the way. It s okay to talk about success, just don t omit what got you there. Clear moral or purpose There s a reason why you re telling this story, to this audience, at this time Personal connection The story involves either you, or someone you feel connected to Common reference points The audience understands the context and situation of the story Detailed characters and imagery Have enough visual description that we can see what you re seeing Conflict, vulnerability, or achievement we can relate to Similar to point #4, show us the challenges Pacing There s a clear beginning, ending, and segue way back to the topic How to Tell a Great Story Carolyn O Hara, Harvard Business Review, 30 July 2014 Start with a message Mine your own experiences There may be a tendency not to want to share personal details at work, but anecdotes that illustrate struggle, failure, and barriers overcome are what make leaders appear authentic and accessible. The key is to show your vulnerability. Don t make yourself the hero Whenever possible, you should endeavor to make the audience or employees the hero. Highlight a struggle A story without a challenge simply isn t very interesting. Keep It Simple Practice Makes Perfect Once you tell a very compelling story, the first thing someone does is think, Who can I can tell this story to? So, for the extra three minutes you spend encoding a leadership communication in a story, you re going to see returns that last for months and maybe even years.

GET SOCIAL THE EVIDENCE IS IN consumers want to support conscientious, green businesses.

sustainability consumers will use this information.

Opportunities to promote Napa Green on Social Media: Premiere Napa Valley Down to Earth month in April Harvest

8 GET SOCIAL THE EVIDENCE IS IN consumers want to support conscientious, green businesses. While most consumers are not asking outright for sustainability bonafides, if you share your commitment to sustainability consumers will use this information. Differentiate your wine and build consumer loyalty with #NapaGreen. Opportunities to promote Napa Green on Social Media: Premiere Napa Valley Down to Earth month in April Harvest Awards (e.g. California Green Medal) Hashtags: #NapaGreen #OurNapa Social Media Handles: Questions or ideas? Contact Stephanie Gibbins, Examples of successful social media:

9 NAPA GREEN FREQUENTLY ASKED QUESTIONS Why should I get certified? What are the biggest benefits? Napa Green Certified Land facilitates regulatory environmental compliance, saving landowners time and money on the compliance process. Certified landowners are making a contribution to the health of the Napa River watershed - improving the quality of the vineyard improves the quality of the watershed improves the quality of the community. One of the biggest benefits of being a Napa Green Certified Winery is cutting production costs, saving money while using resources more efficiently. The Napa Green Winery program has identified over $500,000 in annual energy rate savings and rebate opportunities for energy efficiency upgrades. And that is not to mention the extensive savings from improving overall operational efficiency. The Napa Green Certified Winery program also validates environmental compliance, providing regulatory peace of mind. The sustainable, conscientious business practices of both Napa Green certifications helps wineries build consumer loyalty and differentiate their product in the marketplace. What does it cost to get certified? The aim of both Napa Green programs is to help vineyard and winery owners save money. As part of Napa Green Certified Land vineyard owners are saving time and money to achieve environmental regulatory compliance, accessing grant resources for vineyard, road and waterway improvement projects and free resources like irrigation efficiency audits. As part of Napa Green Certified Winery the Napa Green team helps winery owners improve efficiency and facilitates access to rebates for operational upgrades.

10 Napa Green Certified Land is an umbrella program that recognizes two third-party certifications - Fish Friendly Farming or LandSmart. Fish Friendly Farming charges $8/acre to help develop and certify a Farm Plan, and an additional per acre fee (TBD) to meet new Regional Water Quality Control Board Waste Discharge Requirements (WDR). LandSmart currently has grant funding that covers costs to develop and certify a Farm Plan, but may implement fees for additional compliance support to meet the WDR. To become a Napa Green Certified Winery each winery receives an Integrated Resource Assessment - a onestop, whole system energy, water and waste audit. These assessments are subsidized by Napa Valley Vintners and PG&E so there is only a matching fee of $ depending on the size and complexity of the winemaking operation. This is currently the only winery certification fee. How many sustainable business practices do Napa Green Wineries implement? Napa Green Certified wineries must implement at least 100 sustainable business practices that ensure the winery has gone beyond environmental compliance to conserve resources, reduce waste, enhance energy and water efficiency and care for employees and neighbors. Every action to enhance resource efficiency and eliminate waste also reduces the winery s carbon footprint or greenhouse gas (GHG) emissions. What is the difference between Napa Green Land certification and organic certification? The two certifications have a different emphasis. The emphasis of Napa Green Certified Land is on watershed stewardship and reducing sediment erosion and runoff, conserving water and preserving and restoring riparian habitat. Organic certification is focused on eliminating synthetic inputs and implementing practices like Integrated Pest Management. The Napa Green Land certification process does include evaluation of current inputs, shifting to lower toxicity inputs if applicable, and implementing Integrated Pest Management as well but the certification does not currently explicitly prohibit any herbicides, fungicides or pesticides (this may change in the future). A significant difference between Napa Green Land certification and organic certification is that Napa Green Certified Land facilitates environmental regulatory compliance, including compliance with the new Regional Water Quality Control Board Waste Discharge Requirements. Are the Napa Green programs third-party certified? Yes, to become certified in either the Napa Green Land or Napa Green Winery program there is independent, thirdparty certification validating implementation of each program s standards. Napa Green Land standards are thirdparty certified by the Napa County Agricultural Commissioner, representatives from the National Marine Fisheries Service, Certified Erosion Control Specialists, and other vineyard land management experts. Napa Green Winery standards are third-party certified by a Napa County auditor with the California Green Business Program. What about re-certification? Onsite re-certification of Napa Green Land management and associated Farm Plans occurs every five years, with annual paperwork audits in the interim. Onsite re-certification review of Napa Green Winery required measures and continuing improvement occurs every three years, with annual review of metrics and Action Plans (where relevant).

11 What is the difference between Fish Friendly Farming and LandSmart? Vineyard owners who want to achieve Napa Green Land certification can choose either Fish Friendly Farming or LandSmart as their third-party certification pathway. Fish Friendly Farming certification is facilitated by the California Land Stewardship Institute. LandSmart certification is facilitated by the Napa County Resource Conservation District (RCD). The two programs are highly comparable as they were both developed with the same goal to help landowners meet and exceed environmental regulatory compliance for watershed health. Both programs work with landowners to implement beneficial land management practices across the entire agricultural property (not just within the vineyard) that reduce erosion and sediment runoff. Reducing erosion and runoff is critical to improving watershed health and habitat for fish (including threatened Steelhead trout and Chinook salmon) and other aquatic species. Both Fish Friendly Farming and LandSmart place a core emphasis on road maintenance and management (a leading source of sediment and erosion) and preservation and restoration of healthy streams, creeks and riverfront on vineyard properties. When were the Napa Green Land and Winery programs created? In 1998 the California EPA declared the Napa River impaired and the State Water Board set reduction standards for Total Maximum Daily Load or TMDL of fine sediment into the river. In the early 2000s Napa Valley Vintners (NVV) led collaborative efforts with community non-profits, regulatory officials, and Fish Friendly Farming to develop and launch Napa Green Certified Land. The first property was certified in As of April 2018, over fifty percent of Napa Valley vineyard acreage has achieved Napa Green Land certification, representing over 22,000 vineyard acres across nearly 400 properties. Roughly 150 miles of year-round creeks and rivers have been evaluated, and improved where necessary. In 2007, NVV built on the success of Napa Green Certified Land and introduced Napa Green Certified Winery, creating the opportunity for comprehensive sustainability certification from soil to bottle. NVV collaborated with consultants and Napa County staff to develop winery application requirements and third-party certification through the California Green Business Program. The first winery was certified in As of April 2018, there are 70+ Napa Green Certified wineries. How do I find Napa Green certified wineries and vineyards? A complete list of certified wineries and vineyards is available on the Napa Green website at org/members/. Additionally, the Napa Green team has put together a set of twelve itineraries to help visitors to the Napa Valley plan their trip to Napa Green wineries: These itineraries highlight Napa Green practices at 36 Napa Green wineries located throughout the Napa Valley, offering both dropin and appointment-only tastings.

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