Treasury Wine Estates says its latest sustainability strategy builds on the thinking and ambition set out in its 2021 original plan, reflecting its understanding of the urgency of the climate crisis.
TWE chief Supply and Sustainability officer, Kerrin Petty, said, “Viticulture is a climate-exposed industry, and we must move faster than ever to ensure our business is sustainable.
“Our value chain is connected to people, communities, ecosystems, and other businesses internationally. We are committed to collaborating with our partners to create economic, social, and environmental change and make the world a better place for future generations.”
In revising its strategy, the company used the Global Reporting Initiative (GRI) Standard and the AA1000 Accountability Principles, with reference to the Taskforce on Climate-related Financial Disclosure (TCFD), Sustainability Accounting and Standards Board (SASB) and recently released International Sustainability Standards Board (ISSB) Standards.
“The assessment process involved a desktop review of key documents such as consumer research, investor insights, global megatrends, industry analysis and sustainability reporting practices.
“Stakeholder engagement was also conducted with internal stakeholders, including our ELT and external stakeholders (such as investors, industry representatives and customers). A combination of primary (interviews, surveys) and secondary sources were utilised,” the company said.
The result built on its last assessment in FY21 with eight high-priority and seven medium-priority topics aligned to eight of the UN Sustainable Development Goals.
Its latest analysis showed that more than 95 per cent of its emissions occur in its value chain.
The full report is here.
It includes case studies on TWE’s global initiatives:
- A two-month telemetry trial at the Grace Benoist and Gamble Ranches in California to help inform TWE’s future direction about monitoring its water footprint in real-time;
- addressing several problematic materials used in TWE's products to improve recyclability by transitioning to 100 per cent cardboard packaging material, developing exit plans to phase our PET sleeves on bottles for brands who use them, an end-to-end review on Penfolds Bin Series gift boxes, and several sensory trials on alternate closures and bagnums;
- a deep dive into growing Shiraz grapes in the Barossa to advance TWE’s understanding of projected climate-related impacts across the company's operational footprint; and
- the introduction of the ‘Double Check’, a global internal safety campaign to help build TWE’s safety culture.
TWE said key milestones for FY23 were:
- The completion of 21 solar installations across nine sites, including Australia’s largest winery solar system. TWE reached nearly 20 per cent renewable electricity and is on track to meet its target of becoming powered by 100 per cent renewable electricity by the end of 2024, which is the first – and a major – step in achieving the larger goal of achieving net zero emissions by 2030 (scopes 1 and 2).
- of TWE’s owned and leased global sites, 99.3 per cent maintained sustainability-related certification. “TWE believes that certification is important in that it holds the company accountable for third-party verification and gives consumers confidence that their wine has been produced sustainably. Every year, TWE strives to achieve this for company-owned and leased vineyards and recently worked with its grower and bulk wine community to encourage them to do the same,” it said;
- collaboration with growers and bulk wine providers accelerated the adoption of region-relevant certification, with around 86 per cent of fruit sourced from Australian growers now certified by Sustainable Winegrowing Australia and 100 per cent of New Zealand volume certified by Sustainable Winegrowing New Zealand – with progress in other regions underway.
- an investment of about $10 million in research and development in the low and no-alcohol product category to help create genuine choices for consumers. TWE released new products, including Squealing Pig no and low alcohol options and Pepperjack mid-strength Shiraz.
