Global Wine Industry: Climate induced Challenges and Opportunities

In 2008 ClickTellConsulting was commissioned to carry out a preliminary study identifying climate induced challenges faced by the wine industry and, perhaps ironically, the consequential business opportunities that these challenges offered. We are now in a position to share with you some edited excerpts of the report.

Introduction:

“….Climate change is global in its causes and consequences. Although it is currently difficult to predict the consequences of climate change with complete certainty – we now know enough to understand the risks…”

“…This report begins by highlighting the main national and international initiatives to reduce carbon emissions and mitigate climate change, prior to discussing and analysing some of the implications for the wine industry. The research demonstrates that as far as Scope 2 emissions are concerned, on a like for like basis, there are significant country specific differences in the CO2 emissions resulting from the wine making process…”

The Impact Of Global Warming On Wine Making:

“…On the one hand the increase in temperatures have made it possible for a country like England to produce wine that the critic Jancis Robinson calls “ Far from a joke now”. On the other hand in the currently hot regions such as California and Australia climate change has not only made irrigation a taxing issue, but has also led to rising alcohol levels in wines. The 2007 drought in Australia resulted in a complete loss of the grape harvest in some areas…”

The Response Of The Wine Industry:

“…Over the past few years several national agencies including; The Wine Institute of California, New Zealand Winegrowers, Integrated Production of Wine South Africa and the Winemakers Federation of Australia have been working towards Greenhouse Gas Accounting…”

Country Specific Scope 2 Emissions:

“…In other words, in wine making on a like for like basis, as far as Scope 2 emissions are concerned; 1 bottle of wine produced in country X [name deliberately not shown] is likely to emit the same amount of CO2 as 9.6 bottles of wine produced in country Y [name deliberately not shown]….”

~ ClickTell Consulting ~

The Paradox of Water

“Water, water, every where,

And all the boards did shrink;

Water, water, every where,

Nor any drop to drink.”

Samuel Taylor Coleridge, The Time of the Ancient Mariner

Many of the great civilizations were formed around rivers and waterways. Mesopotamia, that very cradle of civilisation had two major rivers - Tigris and Euphrates - running on either side. The same holds true today; you would have to be mad to move to a house with no running water.

Well, that's exactly what I did when I moved to our small holding in Shropshire (England) ten years ago. A tiny shallow well had been the main source of water to our property since 1848. Shallow wells heavily depend on rainfall. So it is quite simple - a sustained dry period means very little or no water at the tap. It is as simple as that. No water authority to complain to and no water bowsers in sight.

The little well remained faithful until 2006 when on one sunny August day I had to inform our guests that there simply was no water in the tank. The water in the well had reached the lowest level ever and was in the process of drying up. I could not help feeling like the character Jean de Florette, desperately seeking an immediate solution to this fundamental a problem.

We managed – just. Tenko-like rationing meant that there was just enough water for the very basic needs. A large supply of bottled water (of all things) carried us through what proved to be not only a taxing, but also an enlightening period.

Being far away from any mains water with no forseeable rainfall meant we had to look elsewhere. Considering nothing was coming from the skies we decied to look underground - 50 metres underground in fact. A borehole tapping into aquifers is, for now, our salvation. I say "for now" as the supply of groundwater is also limited. Only 0.9% of the total water supply of the world is groundwater.

I must confess to a love affair with water that started when I first removed the cover to our shallow well and peered into this “blue gold” - A gift that mother nature had so selflessly brought to my door step for centuries. I would also like to think that my distant Zoroastrian heritage had long ago planted the seeds of respect for all natural gifts including water into my genetic path. Especially so given that Zoroastrians saw the role of mankind to protect the “Seven Creations” comprising of sky, water, earth, plants, animals, man and fire. Of course, the purifying role of water in for example ritual washing or ablution is well documented in most major faiths.

Moving on to the 21st century how do we set out to protect rather than just consume this gift of nature? How do we best begin to see water not as a right but a finite, precious entity?

Undoubtedly science, innovation, regulations and new management techniques all have a specific role to play in the more appropriate and efficient use of water and energy. Granted, we are extremely resilient and undoubtedly have been designed to procreate, progress and innovate. But total reliance on this approach introduces a potential flaw - our perceived technical mastery over everything including water can lead us to a false sense of security. We would do well to complement our scientific excellence with instilling a sense of consciousness, social responsibility and more importantly a genuine respect and humility towards nature.

It does not take droughts, flash floods or another Tsunami or Hurricane Katrina to see that despite the phenomenal progress of humanity, we are all subject as individuals to the most basic needs in life.

Note: This article by Dr Sepe Sehati, Co-Founder of ClickTell was originally written in April 2008, for Coolaworld an environmental organisation.

Did Angela Merkel heed ClickTell’s warning?

In our 27th May Tweet regarding Google’s decision to locate one of its data centre’s at a Finish coast  – we asked whether in the wake of Fukushima  it was astute to locate even a data centre at the seaside, let alone a nuclear power station.

 Today Germany’s coalition government announced  the closure of nuclear power plants by 2022. Following the crisis at Fukushima in Japan, Chancellor Angela Merkel set up a panel to review nuclear power.

Nuclear power generates a quarter of Germany’s electricity. Therefore, unless this announcement is followed by successful deployment of other sources of energy, it would be hugely damaging to Germany’s industry and economy.

However, given that Germany has already made huge investments in renewable energy this decision will most likely put Germany well ahead of the game in such a way that it will boost her economy and perhaps more importantly avoid the faintest possibility of any devastating disaster of a nature that can be linked to nuclear power.

Germany has shown extraordinary courage and leadership in taking this difficult decision.

During his recent speech to the UK Parliament, president Obama said “.. The world is at a pivotal moment….The time for our leadership is now.”

Well, there you have it, Europe’s largest economy has just walked the talk and led the world in an area so fundamentally crucial to the existence of mankind.

Innovative Behavioural intervention

At ClickTell we have a track record in implementing successful innovative behavioural interventions in disparate fields ranging from the environment to healthcare. In doing so we utilise our consultants' in-depth knowledge of behavioural psychology and persuasion principles coupled with other evidence-based behavioural models.

According to a recent study [PDF] on reducing energy use, simple non-expensive innovative interventions reduced energy demand by 1.8% on average, with the effectiveness of individual programs ranging from 0.9% to 2.9%. The study, which followed 750,000 homes in six US states, offered home energy reports containing information about energy usage and, importantly, comparing that data to neighbours' usage.

“To get a sense of the magnitude of these effects, a simple extrapolation of the savings rate suggests that reducing residential electricity usage across the United States by 1.8% would save over 26,000 GWh of electricity, reduce greenhouse gas emissions by roughly 8.9 million metric tons of carbon dioxide per year – equal to the emissions from three 500-MW coal-fired power plants – and save households just over $3 billion dollars per year on their electric bills.”

To discover how your organisation can benefit from such solutions, contact ClickTell.

Puma puts a value on it’s environmental impact

ClickTell applauds Puma, for this week publishing a comprehensive economic valuation caused by greenhouse gas emission and water consumption along its entire supply chain.

For some time now, at ClickTell we have held the view  that in the not  too distant future all businesses will eventually have to account for their use of natural resources. This prediction is heavily influenced by data pertaining to severe & unpredictable weather patterns, continuous increase in the world population, shortages, regulations, price increases and geopolitical instability.

In 2008 ClickTell published a white paper entitled, “Towards a Global Low Carbon Economy: The Role of the Wine Industry”.  The following is a short excerpt from the report which was commissioned by a major wine producer:

“While, apart from the environmental impact, currently the production and distribution of wine may be without economic consequences – this situation is most likely to change in the very near future…..The exercise of appropriately responding to the CO2 challenge will most definitely re-write some of the existing business models and practices in addition to highlighting new business opportunities along the supply chain.”