Wine Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Wine Industry

Wine is one of the most climate-sensitive industries because changes in climatic conditions affect the quality of grapes. Also, the entire process from production to distribution contributes to rising emissions as agriculture production is a major emitter.

It has been observed that the overall impact of the wine industry on the environment and society includes several key elements starting with its production phase. These include the increased use of water, wastewater concerns, health problems faced by workers in manufacturing plants, and many more. Additionally, we will see an in-depth analysis of the impacts created by the industry.

Transition towards Sustainable Wine

One reason for the transition towards sustainable wine is consumer awareness after a pandemic when they choose green products instead of conventional ones. Consumers transitioning towards sustainable wine are assured that the product they are buying is extracted and sourced ethically. Additionally, it also guarantees environmental sustainability by not using chemicals during the manufacturing process, which, in turn, minimizes emissions. In addition, workers' well-being is also a factor, because sustainable production practices ensure fair working conditions for the production and manufacturing process, and lastly, the economically viable aspect, where locally sourced materials support the local economy.

Innovations in wine industry

A more conscious approach towards sustainability has led to the adoption of innovative approaches in the industry. Around the globe, eco-friendly farming and winemaking methods are followed. Eco-friendly farming methods include organic farming methods, which make use of biodegradable materials such as waste products and composted manure instead of chemicals and pesticides, and many other harmful things. Additionally, the new, eco-sustainable wine-making methods reduce chemicals, waste, and water consumption, as well as help better wine growth and produce better wines.

ESG Impacts

Cultivating wine has an adverse impact on the environment from its inception. To further explore this, vineyards contribute to soil and water pollution with several other chemicals in the production process. This utilization of chemicals and pesticides contributes to around 20% of GHG emissions. Moreover, the impact is also seen on wildlife as the necessity of vineyard production leads to the clearance of forests which further leads to the fragmentation of the landscape.

Other critical impacts observed were the high production of wastewater with extremely high organic loads. When vineyards are not connected to sewer systems, this discharge of water has a major impact on rivers and lakes. Water contamination is also another key point that cannot be ignored. Furthermore, factors such as waste generation due to spills during the fermentation process, as well as energy consumption for cooling, filtering and transferring wine contribute to pollution. The constant use of energy in many production processes is also one of the main risks. Additionally, since the manufacturing industry requires workers, the increase in health risks is pretty obvious, where workers are at risk from allergic diseases, asthma, death, and many other health risks. The factors mentioned above are some of the key impacts which are linked to the wine production industry.

ESG Challenges

Speaking about the challenges, the drastic change in the climate has been a real challenge for the industry. In response to climate change, vines yield fewer grapes and produce smaller grapes. This occurs because warmer weather makes it harder for plants to grow, leading to their producing fewer fruits. Similarly, other challenges such as hailstorms, droughts, and other extreme weather events also cause damage to the planting.

Furthermore, it is worth noting that labor shortages are an issue that affects all countries, especially remote areas where living costs are high. In fact, labor shortages are among the biggest challenges the wine industry faces.

Growth of Wine Industry

According to market forecasts, the global wine market is expected to grow at 6.4% a year between 2021 and 2028, compared to a value of USD 417.85 billion in 2020. As wine is increasingly being adopted by people of all ages, from the young to the old, market growth is a major factor. Furthermore, the research also highlights key aspects of the wine market.

Major Players in Wine Industry

    • Asahi Group Holdings, Ltd.

    • Beijing Yanjing Beer Group Corporation

    • The Wine Group

    • Castel Frères

    • Accolade Wines

    • Constellation Brands

    • Treasury Wine Estates (TWE)

    • Pernod Ricard

    • E. & J. Gallo Winery

    • Viña Concha y Toro

Scope of the Automotive Wine Market ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of this Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the wine market, globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the wine industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment