Environmental & Social Sustainability in the Winemaking Industry: Views from a Couple

Written by Valeria Saía Guere?o and Pablo Verra.

Context: The Need for Sustainability

There is scarcely a headline today that does not mention responsible business, impact investing or sustainability. The wine industry has an 10,000 year history of adaptation to change, and, as such, it offers a unique perspective into resilience and lessons that can be broadly applied across sectors and geographies (World Economic Forum, 2021).

As noted by the World Economic Forum , “the concepts of ‘sustainability’ become less clear when applied to grape and wine products. The initial absence of a common definition of sustainable viticulture and winemaking, and the actual absence of a common vision on the methods to be applied to achieve sustainability may cause confusion, both among winemakers and consumers”. In order to define the concept of sustainability applied to viticulture and wine production, both the International Organization of Vine and Wine (OIV) and the International Federation of Wine and Spirits (FIVS) have developed sustainability guidelines, the Guidelines for Sustainable Viticulture (OIV, 2008), and the Global Wine Sector Sustainability Principles (FIVS, 2016), respectively (Baiano, 2021).

At its core, viticulture is agriculture. But vineyard activities still contribute around?40% to the carbon footprint of wine (Sustainable Growing, 2021). As a response, many?farmers?(New York Times, 2021) are adopting regenerative agriculture, use of cover crops, renewable energy sources for vehicles, electricity and water, and are leveraging a variety of tools to minimize their impact on the environment.?Others are experimenting?(Wine Magazine, 2021) with alternative rootstock, heat-resistant grape varieties as well as those that take longer to ripen to combat the already very prevalent impacts of climate change.

In addition, most of the carbon footprint of the wine, anywhere from 40-50%, is actually due to the?transport and packaging in the glass bottle (Porto Protocol, 2021).?The adoption of?boxed and canned wine?(Wine Business, 2021) is growing globally.

On the social front, winemaking is quite labor-intensive, especially in regions of the world where the hilly and rocky terrain does?not accommodate machinery well (internationalwinechallenge.com, 2021). In the summer of 2020, the natural wine world, one where the processes are ostensibly more sustainable and equitable, was rocked by a scandal in which an Italian winemaker was implicated in accusations of abusive labor practices. In today’s world of viral news spread and cancel culture, the winemaker's business?took a huge hit (The Cut, 2021). This incident served to stimulate dialogue on what fair labor practices are, and underlined how interconnected the industry is: a labor issue in a brand that stakes its reputation on being more conscious does not remain a local issue.

With all of this in mind, we feel that it is quite important to understand how impactful can the wine industry be and the benefits of becoming fully "sustainable". As a reference standard, we will use the Sustainable Development Goals (SDGs), promoted by the United Nations in 2015.

Winemaking: Its Impact On The SDGs

There are several fronts where the wine industry can, either negatively or positively, impact the SDGs. Below, we focus on the most relevant ones:

Climate Action (SDG 13)

First, pesticides used in the wine industry generate significant amounts of greenhouse gases (GHG) in the course of its lifecycle. Manufacturing, bottling, transportation and even the environment and pesticide degradation generate emissions (Libres de contaminantes hormonales, 2023). And 99% of the pesticides' components come from fossil fuels.

Furthermore, the process where a pesticide is produced requires a significant amount of energy which, in turn, generates further GHG emissions. Even though pesticides receive significantly less attention that nitrogenous fertilizers, in the context of stopping climate change, one kilogram of pesticide requires, on average, 10x the energy than one kilogram of fertilizer.

After its application, pesticides also produce GHG emissions like nitrous oxide and tropospheric ozone, which are toxic both for humans and crops. Some pesticides, like sulfuryl fluoride, are, on their own, very strong sources of GHGs, with an impact equivalent to 5000x the contamination level of carbon dioxide (Jean-Philippe Boulanger, 2023).

Research shows that, taking into consideration an increase in plagues (themselves generated by climate change), in the short-term, the use of synthetic pesticides will likely increase in traditional agriculture (Jean-Philippe Boulanger, 2023). A larger use of synthetic pesticides will disproportionately affect populations that are already under stress due to the extensive types of effects derived from climate change, such as extreme heat or smoke from forest fires.

Good Health and Well Being (SDG 3)

Wine industry workers have a number of specific health risks associated with their occupation. Viticulture workers are at risk of work-related musculoskeletal problems, especially of the wrists and hands, from vine pruning work, and can develop allergic diseases, including occupational asthma, from exposure to insect pests growing on vines. They may also be at risk of illness from exposure to the many classes of pesticides used to keep vine pests in check. Wine production workers also face health risks. The most serious of these—working in confined spaces with low oxygen and high carbon dioxide levels—can cause death. Winemakers and wine tasters may suffer significant dental erosions and sensitivity as a result of the acidic nature of the wines they need to taste numerous times a day. This problem can seriously affect their ability to practice their profession. While work-related injuries are more commonly reported than work-related diseases in the wine industry, physicians assessing the medical problems of wine industry workers should be aware of the occupational health risks faced by these individuals (Youakim, 2006).

Responsible Consumption and Production (SDG 12)

In France, on one hand, 20% of the total amount of pesticides applied were used in vineyards. And this is despite the fact that only 2% of available land is dedicated to wine production (Campo Galego, 2022). On the other hand, France accounts for the largest amount of eco-friendly vineyards in the world (Wein Magazine, 2023).

European researchers indicate that new methods are needed to improve winemaking's long-term sustainability, in order to position the sector in a competitive way. For instance, Argentina is an example of the development and application of new models of regenerative viticulture (Observatorio Vitivinícola Argentino, 2022). One of the priorities of regenerative viticulture is the appliance or boosting of practices that contribute to the production of healthy food.

For instance, this is seen in initiatives like those undertaken by Argentina's Grupo Bulgheroni (Infobae, 2022), which owns Bodega Garzon in Uruguay (in addition to other wineries in Argentina, the United States, France, Italy and Australia). The group has the goal of achieving, by 2025, the availability of 700 pesticide-free hectares.

In the Southern Cone of Latin America, the topic is also very present on the education front, in classes like "Inversiones de Impacto" at the Maestría en Finanzas Di Tella in Argentina or "Impacto del Uso de Fitosanitarios" at the Agronomy School of the Universidad de la República in Uruguay.

Financial Inclusion (SDG 8)

Historically, the agribusiness industry has been directly linked to very high levels of informality and precariousness (Brignardello, 2018). Furthermore, its workforce is often viewed as poorly developed and difficult to distinguish. Nowadays, all these practices are being questioned as the use of technology and the requirements of traceability translate into a reduction of informality. Brignardello's study concludes that the implementation of technology in the winemaking process does not reduce the number of employed laborers. On the contrary, winemakers include these new technologies as part of their traditional employment practices.

Gender Equality (SDG 5)

In Argentina, there are many women involved in the process of winemaking, wine education and wine distribution. This process started in the last few decades of the twentieth century and has continued to grow until now. Today, it is quite common to find women leading the different stages of the winemaking chain (Guarda14, 2022).

Wines of Argentina (WOFA), the execution unit of COVIAR ( Corporación Vitivinícola Argentina ) is focused on the promotion of Argentine wines at a global level. In this context WOFA has signed the Women Empowerment Principles (WEPs), an initiative from UN Women and the Global Pact of the United Nations . This initiative promotes gender equality and the empowerment of women in the organization and communities in which they participate.

There are many examples of women who are involved in the Argentine wine industry. We can recognize Paz Levinson , Maria Valeria Gamper and Andrea Mariana Donadio , three of the world's most praised sommeliers. In addition, Adrianna Catena , Pamela Alfonso , Sofia Elena , Paula González , Daniela Mezzatesta , Susana Balbo , Agustina Hanna , Ana Viola , Ana Paula Bartolucci and Mariana Onofri , are often mentioned among the top winemakers in the country. Finally, there are quality initiatives led by women in the wine education front, such as CAVE - Centro Argentino de Vinos y Espirituosas -, established by Flavia Rizzuto and María Barrutia.

A Path Forward: Fair Trade Certifications

Vineyards that are certified by Fairtrade International receive at least the Fairtrade Minimum Price when they sell their wine (grapes) to a trader on Fairtrade terms. This protects producers against sudden price shifts and enables them to plan beyond the next planting and harvesting cycle.

Fairtrade first certified wine in 2003. Its involvement in this sector stemmed from concern around the labor conditions of workers on large wine estates, as well as the difficulty faced by smallholder wine growers in developing countries to earn a decent living (Fairtrade, 2023).

As stated on Fairtrade's website "growing wine (grapes) is a challenging business: it relies on seasonal work for harvesting grapes, but also requires specialized equipment to produce wine. Workers and small-scale farmers have often fallen short of earning a stable living from wine production, lacking the spare money to invest in improvements that cater to shifting trends and tastes in the industry".

For many farmers and workers, involvement in Fairtrade has helped to improve their situations, whether through the targeted investment of Fairtrade revenues toward education and improved facilities, or the encouragement to form cooperatives that gain economies of scale in this global industry.

In Argentina, wine represents the most significant Fairtrade-certified product (La Riojana, 2022). There are 4,000 hectares that have already been certified and labeled winemakers include Finca La Celia , La Riojana Coop. , Bga Montlaiz S.A. , Bodega Alta Vista , Bodega El Esteco and BODEGAS Y VI?EDOS AMADEO MARA?ON S.A. , among others.

There is, however, a whole range of certifiers, as evidenced by the number of logos in the picture above. However, not everyone certifies wine. Another relevant wine certifier is Fair for Life , which, according to its website, is focused on "responsible supply chains". In Argentina, certified winemakers include Grupo Pe?aflor , Familia Zuccardi Argentina , Bodega Domaine Bousquet and Bodega y Cavas de Weinert (Fair for Life, 2023).

Conclusion: Economic, Environmental and Social Benefits

Sustainability is critical for the wine industry. Sustainable vineyards and winery practices produce economic benefits, such as the long-term viability of the land and the business, long-term cost savings, improved wine quality and enhanced value of real estate, among others. It also produces environmental benefits, including, again, the long-term viability of land, the specific control and supervision of unique land and the conservation of natural resources. Finally, it produces social benefits, such as the health and well being of the farm's and winery's employees and neighbors; and enhanced relations with neighbors, communities, consumers, tourists, regulators and public institutions.

It is clear that the paths of sustainability and winemaking, like our marriage, are closely intertwined, and they should be followed together.

Valeria Saía Guere?o is a certified WSET Level 3 sommelier. She is an instructor on diverse wine-related topics at CAVE. She also organizes private wine tasting events.

Pablo Verra is the CEO and Founder of Verra Impact Consulting, a boutique firm focused on sustainability and decarbonization. He is also the academic director and professor of the class of Impact Investing at Universidad Torcuato Di Tella.

Valeria and Pablo have been married for almost 20 years, have three daughters and reside in Buenos Aires, Argentina.