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Sustainability in the Chilean Wine Industry Down to Earth New World @ Prowein Sustainability Seminar 23 rd March 2010 Slide 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 Slide 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 Chiles country image THE CHILEAN WINE INDUSTRY Slide 4 IMPACT OF CLIMATE CHANGE Increase in T: 1-1,5C until 2050; 2-4C until 2100 Slide 5 30% Decline in precipitation; increase of extreme weather events IMPACT OF CLIMATE CHANGE Slide 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 Slide 7 SUSTAINABILITY MANAGEMENT: MACRO Industry Sustainability Code (2009): Benchmarking and Manual R&D consortia Vinnova Chile TechnoVid + Universities Government Program: Pas de Eficiencia Energtica + InnovaChile CORFO Slide 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 Slide 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) Slide 10 SUSTAINABILITY: THE FUTURE Economic SocialEnvironmental ISO 26000 Sustainability as a competitive advantage and driver of innovation Slide 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 Slide 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 Slide 13 300 Ha BCS kogarantie Certified Organic (2000) DE MARTINO: Organic Viticulture Slide 14 Biological Pest Control DE MARTINO: Organic Viticulture Slide 15 Composting 3000 m3 DE MARTINO: Organic Viticulture Drip irrigation and cover crops Slide 16 USD 1,5 million WWTP (UNFCCC) 58 MM ltrs 30.000 tCO2e reduction p.a. Worlds first winery to sell carbon credits DE MARTINO: Water Management/Climate Change Slide 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 Slide 18 Jacques Wein Depot (D) Dansk Supermarked (DK) Gal & Gal (NL) (UK) (B) DE MARTINO: NUEVO MUNDO Slide 19 2010: ALL De Martino wines certified CO2 Neutral (Carbon Reduction Institute) DE MARTINO: First Carbon Neutral Winery in South America