Valuing the Environment in Viticulture

The Challenge

Sustainable farming practices are not just good for the environment, they contribute to the long-term financial sustainability of any agricultural business.

Farms with high natural capital and effective environmental stewardship are more likely to be resilient in the face of climatic and other stressors, which helps maintain or increase their long-term profitability and their value as an asset.

However, a lack of consistent and cost-effective metrics and methods remains a key barrier to farmers, businesses and institutions (e.g. banks, insurers and government) incorporating natural capital into financial and other decision-making.

The Solution

This project focused on the Australian viticulture industry and built on over ten years of industry sustainability data collected by the Australian Wine Research Institute (AWRI). The team analysed the data and worked with Australian wine-grape growers to identify links between environmentally sustainable practices and financial performance.

This project established metrics that enabled growers to benchmark their performance and supported their ongoing environmental and financial sustainability. The metrics developed can assist banks to calculate risk and reward sustainable producers with more favourable lending terms.

Outcomes

• The project linked environmental benchmarking data to financial information and developed a sustainability indicator (Resource Intensity Score) for the wine sector. This RIS sustainability indicator is a first for the Australian wine sector and may serve as a leading example for other sectors.
• The research found that vineyards with the top 10 percent gross margin were more resource-use efficient than those in the bottom 10 percent. used
  
  • 47 percent less water
  • 59 percent less energy, and
  • emitted 63 percent less carbon

Project Updates

Final Report - March 2021: Valuing the Environment in Viticulture

News - October 2018: Australian First: Valuing the environment in viticulture

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For more information, please contact projects@foodagility.com