Pernod Ricard Winemakers Our Focus. Our Environment 2013

Transcription

1 Pernod Ricard Winemakers Our Focus Our Environment

2 Table of contents Message from the CEO 3 The Road to Leadership 4 Our Focus 5 Our Highlights 6 Land 8 Energy 12 Materials 16 Water 20

3 Message from the CEO It is my pleasure to present Pernod Ricard Winemakers first environment report, Our Environment In our inaugural report, we reflect on our commitment to the environment and outline our recent performance. Since the foundation of Premium Wine Brands in 2010, our business has established itself as a true industry leader in sustainability in the global wine industry. Each of our major business units has undertaken significant measures to make a tangible impact in their respective countries of origin. In this report, we outline some of the measures that showcase our commitment to sustainability. These initiatives have enabled us to achieve some remarkable results, including: Jean-Christophe Coutures Chairman and CEO Pernod Ricard Winemakers è è è 100% membership to local sustainability programme for our Australian and New Zealand vineyards in FY12. Carbon emission reduction of 115,589 tonnes since FY10 through various initiatives across the supply chain 164 million Litres of water savings since FY10 through new innovations in our wineries In this report you will see how we are addressing the following four priority areas through a range of industry-leading initiatives in our three main countries of origin Australia, Spain and New Zealand: è è è è Relationship with the land Energy consumption and emissions Material use Water resource control We have set ourselves the challenge of continuously improving the results of our performance so we can maintain our position as an industry leader in the field of sustainability. Jean-Christophe Coutures Chairman and CEO Pernod Ricard Winemakers

4 Pernod Ricard The Road to Leadership Pernod Ricard is the world s co-leader in wines and spirits with one of the most comprehensive portfolios in the industry. Pernod Ricard Winemakers is one of six Brand Owners within Pernod Ricard and manages the strategic wine portfolio. Pernod Ricard: Strategic Drivers Driving the Group s Growth 5 Strategic drivers Corporate Culture Premiumisation and Innovation Decentralisation Commitment to Ethics PROMOTE RESPONSIBLE DRINKING RESPECT OUR ENVIRONMENT RESPECT......our Employees...our Consumers...our Shareholders...our Partners...Local Communities PROMOTE ENTREPRENEURSHIP SHARE OUR CULTURES Pernod Ricard: What we stand for Pernod Ricard s commitment to social responsibility is nothing new; the Group was taking a pioneering role in social policy, environmental protection, entrepreneurial responsibility and social sponsorship long before sustainable development became a global imperative. Since 2003 we have been committed to the 10 universal principles of the UN Global Compact concerning human rights, labour, environment and anti-corruption policies. In addition, in 2010 Pernod Ricard became a signatory to the UN CEO Water Mandate. As a member of the international association Beverage Industry Environmental Roundtable (BIER) since 2009, the Group works with major industry players to develop tools for improving environmental management and performance within beverage sector manufacturers. 4

5 Pernod Ricard Winemakers Our Focus As the Brand owner of the Group s Australian, Spanish and New Zealand wine brands led by Jacob s Creek, Campo Viejo and Brancott Estate, Pernod Ricard Winemakers is responsible for the full production, brand strategy, marketing and international development of these brands. Pernod Ricard Winemakers is the global wine division of Pernod Ricard the world s co-leader in wine and spirits. It has around 2,000 employees, spanning five countries and focuses on six priority brands. It s almost twenty five years since Pernod Ricard first invested in international wine brands, with the acquisition of Orlando Wines. Subsequently, Pernod Ricard acquired a number of wine businesses, which, over time, resulted in a strategic, high performing portfolio of premium wines. In October 2010, with a mission to unlock the value of wine within the Group, Pernod Ricard consolidated its global wine interests under one unified company banner Premium Wine Brands, which was later renamed Pernod Ricard Winemakers. Pernod Ricard Winemakers brings together some of the oldest and most famous names in their respective countries of origin. These brands include Jacob s Creek and Wyndham Estate from Australia, Brancott Estate and Stoneleigh from New Zealand, Campo Viejo from Spain as well as Graffigna from Argentina. These brands, along with the fast growing, new-to-world Californian brand, Dead Bolt, and Chinese domestic brand Helan Mountain, make up one of the most diverse, premium wine portfolios in the world. Pernod Ricard Winemakers: Priorities and Vision Our Ambition: To be the leader in premium wine worldwide Our Vision: Leading wine innovation Our Values: Entrepreneurial spirit, mutual loyalty and a strong sense of ethics Our Priority for the Environment: Understand and minimise our environmental footprint Pernod Ricard Winemakers: Brand companies The information included in this report will focus on operations in Australia, New Zealand and Spain, which look after the following major brands: Australia New Zealand Spain 5

6 Pernod Ricard Winemakers Our Highlights 2013 We have increased our native plantings and organic vineyards to further support our local environment. We have also significantly decreased our carbon footprint and increased our use of renewable energy. *company vineyards with ISO and independently certified sustainability program Sustainable Viticulture *from supplier managed vineyards with ISO and/or independently certified sustainability program Land Biodiversity *electricity and fuels at industrial sites since FY10 Energy Efficiency Energy *verified greenhouse gas inventories since FY10 Carbon Emissions *750ml bottle since FY10 6

7 Pernod Ricard Winemakers Our Highlights 2013 We continue to reduce packaging, while suporting reuse options for other waste products. Our work has also supported the greater reuse of water on-site, saving valuable potable water supplies. Packaging *glass and cardboard packaging since FY10 *750ml bottle since FY10 Waste *by mass, Australia and New Zealand industrial sites since FY10 Materials *by mass, Australia and New Zealand industrial sites since FY10 Efficiency *Industrial sites since FY10 *Industrial sites since FY10 Water 7

8 Land At Pernod Ricard Winemakers we consider ourselves caretakers of the land. Our responsibilities extend throughout the vineyards and drive sustainable viticulture practices and the protection of our ecosystems.

9 Highlights 100%* Australia and New Zealand vineyards sustainably managed *company vineyards with ISO14001 and independently certified sustainability program 74% Grape purchases sustainably managed* *from supplier managed vineyards with ISO14001 and/ or independently certified sustainability program 224ha native plantings to improve biodiversity Our journey Since 2010, we have consistently increased grape purchases from sustainably managed vineyards. In 2013, 74% of our grape supply is certified to an independent sustainability program or environmental management system. Future Focus Biodiversity studies within the Campo Viejo eco-system

10 Sustainable Viticulture We are committed to producing quality fruit through the adoption of recognised best practice sustainable viticulture methods. At Pernod Ricard Winemakers we believe very strongly in protecting the environment and minimising the impact of production on the area in which we operate. Globally, agriculture is faced with many ecological issues such as the environmental effects of pesticides, loss of species to monoculture as well as other critical challenges. Sustainable viticulture promotes ecologically sound, economically viable and socially supportive wine making. Our approach to sustainable viticulture involves minimal intervention as the vineyards are managed in a way that sustains their long-term health while continuing to ensure the economic viability of the operation. Case Studies Sustainable vineyard certifications Pernod Ricard Winemakers has taken an industry lead in environmental certification. We have worked closely with the Winemakers Federation of Australia (WFA) as a founding member of EntWine Australia, a voluntary environmental assurance scheme for grape growers and wineries. To qualify for membership, companies must be independently audited and report their greenhouse gas emissions and resource use annually. In April 2010, we proudly became the first winemaker in Australia to meet the rigorous conditions and be admitted to EntWine Australia membership. Now we are working closely with more than 200 of our growers to ensure they are all eligible for admission by Organic viticulture In New Zealand s flagship wine producing region, Marlborough, Pernod Ricard Winemakers has worked hard in recent years to broaden its organic grape production capability for Brancott Estate. Our grapevine canopy is managed to maximise airflow, which helps to reduce disease naturally. Extensive pest and disease monitoring helps to identify any problems early and allows us to respond efficiently and effectively. To control insects, a range of approved biological methods are being used as alternatives to pesticides. Also, by adapting machinery and introducing specialised implements we control weeds without the use of traditional herbicides. 10

11 Biodiversity We are committed to sustaining a natural balance through preservation of plant and animal biodiversity through a range of responsible practices within and outside the scope of our operations. The main drivers of biodiversity loss are changes in land use, unsustainable use of natural resources, climate change, pollution and introduced invasive species. To help counter these threats, we have initiated restoration and rejuvenation projects in both our direct viticulture land holdings as well as adjacent sensitive ecological areas. In Australia we have been involved in the removal of invasive species at our properties around Jacob s Creek in the Barossa Valley and the Hunter River in New South Wales. Our ongoing efforts are helping to maintain biodiversity across our facilities and vineyards. We are having similar success in New Zealand where our biodiversity efforts involve local communities to help protect areas and species of special significance. Projects include the Waitakere Ranges Heritage Trail and the Brancott Estate Living Land Fund, which supports the New Zealand native falcon. Case Studies Jacob s Creek restoration For more than a decade we have been working to preserve and regenerate important sections of the Jacob s Creek catchment. It s a large-scale project which recognises a once-in-a-generation opportunity to return a significant amount of land to native vegetation. Non-native plants and trees have been replaced with indigenous natives to improve biodiversity and as a result many native species of frogs, fish and waterbirds have returned to the area. In partnership with the Natural Resource Management Board, we are also removing some land from production so these special areas within the Jacob s Creek catchment can also be rehabilitated. Kaituna Wetland native plantings At our Kaituna Vineyards in New Zealand we are busy restoring one of the few remaining wetlands in Marlborough. Restoration plans have been prepared with the local council involving a large wetland area covering nine hectares. The site has been transformed into nature reserves to encourage the return of native waterfowl and long-finned eels and to replenish native plant species. The natural watercourse has also been cleaned and replanted with appropriate natives, and a series of four interlinked ponds turned into a haven for waterfowl. Similar areas are being reclaimed at Brancott Vineyard and the Awatere Valley. 11

12 Energy Improving energy efficiency and lowering carbon emissions is a priority, with innovative solutions introduced throughout the supply chain.

13 Highlights 23% less energy consumed [since FY10] 45% electricity purchased from renewable electricity suppliers ISO verified inventories in 3 countries [since FY10] Our journey Energy consumption (MWh) Megawatt hours -12% DOWN FY10 FY11 FY12 FY13-14% -23% Reducing energy use has been identified as a major focus area. DOWN DOWN Over the past three years we have reduced our energy consumption by almost a quarter since FY10. Future Focus Using our greenhouse gas inventory to measure and identify areas of potential reductions across the supply chain

14 Energy Efficiency We are committed to reducing overall energy consumption through design and careful management both within our buildings and process operations. Energy usage is one of the key sustainability issues facing the wine industry. Pernod Ricard Winemakers has responded by introducing measures to carefully manage energy consumption at each stage of the winemaking process. In Australia, we have installed two large solar power trackers at the Jacob s Creek Visitor Centre, which have 40% higher output than standard fixed solar panels. At our New Zealand and Spain operations, we support electricity retailers that supply renewable energy into the national grid. Case Studies Jacob s Creek solar panels Two large solar power trackers have been installed at the Jacob s Creek Visitor Centre with a capacity to generate an impressive 220kWh per day. The trackers follow the sun wherever it is positioned, even on cloudy days, which increases panel energy output by 40% compared to standard fixed solar panels. Our aim is to reduce energy use at the centre by up to 60% and for it to become self-sufficient and carbon neutral by Campo Viejo efficiencies The Campo Viejo winery cleverly makes full use of gravity for grape reception and processing, which both reduces the need for energy and ensures the fruit reaches the fermenters in the best condition. The split-level design of the building uses underground facilities offering consistent temperatures and stable humidity levels that reduce the need for refrigeration. It also takes advantage of the natural convection and ventilation created by the building s north-south orientation. 14

15 Carbon Emissions We are committed to adapting and mitigating the effects of climate change through reducing our greenhouse gas emissions, improving our carbon footprint and identifying reduction opportunities throughout the supply chain. Climate plays a major role in grape production, wine quality and regional character. The increasing severity of heat stress, temperature change and unseasonal weather can seriously impact the quality of wine. We are active members of the Winemakers Federation of Australia and have supported the development of wine-specific greenhouse gas emission protocols and calculators. These have been applied to our business to identify our main sources of emissions. Pernod Ricard Winemakers has established a high level of internal expertise to compile and maintain our greenhouse gas inventory, which is independently verified. Reducing our greenhouse gas emmissions is part of maintaining our competitiveness. Case Studies Optimising our supply chain A major logistics reassessment of our Australian operations in the UK anticipated a reduction of CO 2 emissions by at least 5,500 tonnes per year*. The initiative involves bottling products for the local UK and Irish markets in the UK. Our forecast suggested that this will reduce the carbon footprint of products bottled offshore by around 23% annually*. This will allow us to reduce the number of container shipments and will support closed loop manufacturing and recycling of glass bottles in the UK. Campo Viejo carbon reduction The Campo Viejo winery in Spain is not just an architectural triumph but also a superbly ecoefficient wine production facility. Grapes and wine can be moved with the aid of gravity, and the winery s boilers operate via heat pumps rather than fossil fuels. In 2011 Campo Viejo became the first Spanish winery to obtain AENOR certification for its carbon footprint in accordance with ISO requirements and also the first Spanish winery to be CarbonNeutral certified. * Life Cycle Assessment carbon footprint study conducted by Premium Wine Brands and reviewed by an independent panel of experts CarbonNeutral certification is the global standard for carbon neutrality provided by The Carbon Neutral Company 15

16 Materials Material efficiency and waste minimisation are both important considerations in our day-to-day operations.

17 Highlights 90% solid waste reused or recycled [Australia/New Zealand in FY13] 58,454 tonnes less packaging [since FY10] 58 grams less packaging per bottle [since FY10] Our journey By adopting the waste hierarchy principles of Avoid, Reduce, Reuse and Recycle we have reduced our waste to landfill by 78% since FY10. Future Focus Explore the introduction of further eco-innovation and life-cycle analysis in the design and selection of packaging and expand waste audits to include industry partners

18 Packaging We are committed to reducing resource use in packaging through life-cycle analysis with a focus on light-weight and sustainable material adoption. Packaging is a key area for winemakers to minimise their environmental footprint. The main focus is avoiding the use of virgin material and increasing recycled content. In Australia, New Zealand and Spain we have reduced the weight of bottles and removed dividers from boxes, resulting in both environmental and health and safety benefits. Pernod Ricard Winemakers is also a signatory to the Australian Packaging Covenant and the New Zealand Packaging Stewardship Scheme which aim to: è Minimise environmental impact from the disposal of used packaging. è Conserve resources through better design and production. è Facilitate the re-use and recycling of used packaging materials. Case Studies Lightweight glass bottles Eco-design has been stepped up across our Jacob s Creek range with a particular focus on innovations aimed at lighter bottles. The changes have resulted in various reductions such as: è 10,000 tonnes fewer CO 2 e emissions è 3,000 tonnes less glass used è 200 fewer full vehicle delivery loads The introduction of lighter bottles is also a key packaging initiative for Campo Viejo and Brancott Estate, where substitution across major product lines has contributed to an overall reduction in net weight per bottle. Slimming down cardboard cartons Our winery operations in Australia, New Zealand and Spain have been working in partnership with suppliers to improve the eco-design of cardboard packaging. We have successfully optimised the thickness of the cardboard used while still retaining the strength required to safely transport bottles. In addition, we have also increased the recycled content of cartons, and reduced and reused secondary packaging. 18

19 Waste We are committed to reducing waste by reuse and recycling, and adopt best practice waste management techniques. Significant inroads have been made in reducing our environmental footprint by ensuring waste reduction is an instrumental part of our business improvement initiatives. Across sites in Australia, New Zealand and Spain, waste separation programs ensure as much material as possible is recovered for recycling. Key objectives include reducing waste to landfill and increasing the portion of total waste that is recycled. Many opportunities to achieve this have been identified through waste auditing, action plans and supplier partnerships. By-products from the wine production process including grape skins, stems, lees and filtration material can be turned into a valuable commodity. In Australia steps have been taken to recycle this potential waste into distillate and other products. In New Zealand and Spain it is reused as compost in our vineyards an initiative which not only enriches the soil s organic content but reduces our reliance on purchased fertiliser. Case Studies Recycling processed grapes About 95% of our combined organic waste never reaches landfill, instead reused as or recycled into other materials of value, using various technologies and in partnership with local providers. Leftover grape skins, stems and seeds are converted into alcohol, livestock feed, and also enriched compost which directly benefits many of our own vineyards through a reduced demand for fertiliser. These initiatives are helping us return as much material as possible to the land in a closed loop waste management approach. Waste audit and action plan The company s Rowland Flat winery in South Australia has an extensive waste management program for the recycling of more than 10 waste streams. A large collection area is used to sort everything from wood and plastics through to crown seals and cans. A thorough waste review across our three largest sites in the Barossa Valley was conducted in 2012 in partnership with Zero Waste SA. This resulted in enhanced awareness in waste reduction and recycling across the business with a Waste Taskforce responsible for driving further improvements. 19

20 Water With water quality and availability a significant global issue we have focused our conservation efforts across our vineyards and areas of higher water stress.

21 Highlights 164 million litres less water consumed by industrial sites [since FY10] 208 million litres of winery waste water recovered for reuse [in FY13] Our journey Water consumption across our winery and packaging sites has been reduced by 33% since FY10. Future Focus Expand our understanding of ecological impacts throughout the water lifecycle and improve our existing waste water treatment infrastructure

22 Water We are committed to conserving our water resources through best practice optimisation and minimization initiatives. Water is an essential component of winemaking and grape growing. A lack of water affects production in the short term and vine health and survival in the long term. The huge demand for water from multiple sources has put excessive pressure on this vital resource which means careful use and management is a top priority. Pernod Ricard Winemakers is investing in the latest technologies at our key sites in Australia, New Zealand and Spain to monitor soil moisture levels and atmospheric transpiration rates of grapevines to optimise water use. We have also invested heavily in infrastructure, such as dams, to maintain our own supplies in line with local land management rules. At our Rowland Flat winery in Australia we have made significant investments in water saving infrastructure and state of the art auto-blending systems to reduce the amount of water used. In addition, where many of our sites are not irrigated but instead rely on natural rainfall, our viticultural innovations assist our water conservation efforts. Case Studies Wine transfer technology Our winery operations in Australia have achieved an impressive 20% reduction in water consumption per litre of wine by adopting an elaborate waterless transfer system called pigging. Rather than using water to push some of the wine between tanks, we use gas. The technique reduces the amount of water needed to displace wine in the pipes at the beginning and end of transfers. Not only does the process save water, but it also cuts down on wine wastage. Campo Viejo water management Our Campo Viejo winery has a comprehensive water saving program that delivers a consumption rate 80% below the regional average. The program includes initiatives such as filtration and recovery of water used for bottle rinsing, hoses fitted with pistols with automatic shutoff, high pressure equipment for floor cleaning, a Clean In Place system for the sterilization of fillers and hi-tech automated barrel cleaning. 22

23 Data is representative of Pernod Ricard Winemakers operational sites and productivity for the year reported. Reductions are a result of qualified improvement initiatives. Claims, case studies and data in this report have been independently validated by SGS New Zealand Ltd. For enquiries contact: Sarah Descher, Global Corporate Communications Manager, Pernod Ricard Winemakers Telephone: +61 (0) sarah.descher@pernod-ricard.com 23

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