Viticulture – Global trends presentation

Site / company name and logo here

Presenter/s names here

This is an Agrifood Skills Australia Ltd project developed in partnership with Energetics Pty Ltd and funded by the Australian Government under the Clean Energy and Other Skills Package

Ecosytem interactions

Biophysical limits

The ecosystem

Society

Technology

Encroachment on biophysical limits

Anthropogenic stressors

• Population increases

• Urbanisation increases

Water systems

Energy systems

Service provision / product

Interactionbetween water, energy and waste systems

Environmental stressors

• Climate change

• Resource use

•Land use

Wastesystems

© Energetics Pty Ltd , Holt et al

Major trends in the Wine Sector

• Growth: stagnant domestically, declining overseas, rising international competition locally

• Market: volatile export markets, high Australian dollar, supermarkets influence, oversupply of grapes and wine

• Customer: consumer preferences changing

• Sustainability Compliance & Labelling– GHG reporting (e.g. Carbon Disclosure, GRI), international enviro

labelling

Drivers for action by business

• Cost: rising for energy, water, carbon

• Competition: Influx of South American wines , tighter margins, ‘green’ differentiation and niche marketing (organic, carbon neutral)

• Compliance: increasing regulatory burden as Governments seek to overcome market failures to act – water and energy

• Community expectation: brand reputation

• Customer: supply chain pressures to reduce price and report environmental performance

Australian energy and water trends, policy and legislation

Water programs / initiatives

ImprovingWater Efficiency Water Management Alternate Water Supplies

EREPEnvironment and Resource

Efficiency Plans

Catchment planningMurray-Darling Basin plans

Irrigation & water licensing: extraction, storage

Water re-use / recycling

Harvesting

Water trading schemesWSAPWater Savings Action Plan

WaterMAPWater Efficiency Plans

Sustainability AdvantageNSW voluntary program

Desalination

WEMPSWater Efficiency Management

Plans

National Water Initiative ($12 bn)

Water discharge quality e.g. EPA license requirements and/or run-off

Stormwater managementFlow attenuation, mitigation

Energy programs / initiatives

ImprovingEnergy Efficiency

ReducingGreenhouse Gas &Carbon Emissions

IncreasingRenewable Energy

EEOEnergy Efficiency Opportunity Act

(large corporations)

Voluntary Greenhouse reduction programs

NGERNational Greenhouse & Energy Reporting Act

RETRenewable energy targets

(Large RES and Small RES)

Voluntary Green Power

Carbon Price and Trading, carbon farming initiative

State Energy Efficiency programs e.g. VEET, ESS, EREP, Sustainability Advantage, SESP

State renewable energy targets

Clean Energy Future initiatives for Business – e.g. Clean Technology Food and Foundries Investment Program

Industry voluntary environmental / sustainability assurance – e.g. “entwine australia”

Given these trends and energy / water management drivers, how should your

business plan to respond?

Identify business initiatives & plans

• Identify the initiatives that your business is doing / planning that align with economic, social and environmental performance goals– List business initiatives– Map these onto a Venn diagram– Where do they fit?(provides basis for understanding business approach,

defining your current approach, and starting to highlight ‘gaps’ in your systems that you may want to close)

Economic

Social

Environmental

For example

Water / energy efficiency target

Staff newsletter

EBIT target

Production volume increase

3-year business plan

Parental leave policies

Drip irrigation at night

Work-life balance

Community clean up

campaignsGreen skills

developmentGHG reporting

Organic wines

Water use license

Tim

efra

me

of t

hink

ing

CompliantCompliant

ReactiveReactive

ProactiveProactiveInnovatorInnovator

Now

Long

-Ter

m

Sophistication of thinking about sustainability impacts

Low High

DenialDenial

Industry development is driven by relative impacts of Government Policy, Industry Innovation and Social Conscience

Organisations will develop at different speeds and early movers will create sustainable competitive advantage

Industry & organisational evolution – where do you want to be in future?

Three questions:1.Looking at current plans v trends / drivers where are you positioned now?2.How do current trends and drivers affect you?3.Given these, where do you want to be positioned?

Economic

Social

Environmental

Tim

efra

me

of t

hink

ing

CompliantCompliant

ReactiveReactive

ProactiveProactiveInnovatorInnovator

Now

Long

-Ter

m

Sophistication of thinking about climate change impacts

Low High

DenialDenial

Given trends globally and in energy / water management, how should my business plan to respond?

Three questions:1.Looking at current plans v trends / drivers where is my business positioned now?2.How do current trends and drivers affect me?3.Given these, where do I want to be positioned?

Consolidating the trends and your plans and position….

• The previous activities define the endpoints for:– Business maturity

• This defines where you want to be against your competitors– Positioning

• This defines how you want to achieve your goals– Combining your review of trends, assessment of your

plans, position and desired future positioning, you are now in a position to assess your risks and opportunities for getting there, and to develop your vision and plans for how to get there.