Cultivating a Sustainable Future: How Can Regenerative Viticulture Support Carbon Insetting in the Wine Supply Chain?
The wine industry, renowned for its rich history and cultural significance, is increasingly becoming a focal point in the fight against climate change. As sustainability becomes a central tenet for businesses worldwide, understanding the concepts of regenerative agriculture, Scope 3 emissions, and carbon insetting is crucial for wine retailers, distributors, wineries, growers and other stakeholders in the wine supply chain. This blog post delves into these key concepts and explores how regenerative viticulture can help retailers, importers and distributors reduce their carbon footprint and strengthen supply chains.
What are Scope 3 Emissions?
There are various standards for measuring and reporting carbon emissions. The Greenhouse Gas (GHG) Protocol categorises emissions from businesses into 3 scopes:
Scope 1: Direct emissions from owned or controlled sources.
Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company.
Scope 3: All other indirect emissions that occur in a company’s value chain.
Scope 3 emissions typically represent the largest portion of a company’s carbon footprint and are notoriously difficult to measure and manage. For the wine industry, Scope 3 emissions include those generated by suppliers, transportation, and even the use and disposal of wine bottles by consumers. These emissions are influenced by various factors along the supply chain, from the farming practices of grape growers to the packaging materials used.
Carbon Insetting and Regenerative Agriculture
Carbon insetting is an approach that focuses on reducing carbon emissions within a company’s own supply chain rather than offsetting them through external projects. In the wine industry, carbon insetting might involve supporting vineyard owners in adopting regenerative agricultural practices, improving energy efficiency in production facilities, or enhancing the sustainability of packaging.
Regenerative agriculture describes a set of farming practices that restore soil organic matter and rebuild degraded soil biodiversity. Implementing regenerative practices reduces carbon footprint by preventing emissions (such as from tillage) and through carbon sequestration, whereby plants draw atmospheric CO2 and store it in the soil as organic matter. Regenerative farming includes practices such as cover cropping, reduced tillage, composting, agroforestry and others.
In the context of viticulture, regenerative agriculture not only improves soil health and vineyard resilience but also enhances the quality of the grapes, improves soil water retention potential, and supports a diverse range of beneficial organisms, ultimately contributing to a more sustainable and resilient agricultural system.
The wine industry is particularly well-positioned to become a leader in regenerative agriculture and sustainability. Unlike most crops, grapevines are planted with longevity in mind. Grape growers are motivated to ensure that the land their vineyard is standing on is healthy, resilient and sustainable. It is no surprise, then, that there are ample sustainability-related conversations and initiatives in the industry, with more traditional and well-established approaches like organic and biodynamic farming, as well as emerging sustainability standards and guidelines such as Sustainable Wine Roundtable’s Sustainable Viticulture Protocol.
How Can Carbon Insetting and Regenerative Agriculture Support Scope 3 Emissions Reduction Goals?
Carbon insetting aligns closely with efforts to reduce Scope 3 emissions. Here’s how it can be particularly beneficial for retailers, importers and distributors in the wine industry:
More Effective Reduction of Carbon Footprint: By investing in regenerative viticulture within their supply chains, wine businesses can directly influence and reduce their carbon footprint through reduced emissions and increased carbon sequestration. This targeted approach is often more effective than external offsets.
Enhanced Supplier Relationships: Supporting suppliers in adopting regenerative practices can strengthen relationships and create a more resilient and sustainable supply chain. This collaboration can lead to mutual benefits, including cost savings, improved product quality and supply security.
Consumer Appeal: Modern consumers are increasingly environmentally conscious. Demonstrating a commitment to sustainability through tangible actions within the supply chain can enhance brand reputation and loyalty. One way to communicate sustainability and regenerative agriculture efforts to consumers is through product carbon neutral certification.
Regulatory Compliance and Competitive Advantage: As regulations around carbon emissions tighten, businesses that proactively reduce their Scope 3 emissions through carbon insetting will be better positioned to comply with future requirements and maintain a competitive edge. The increased carbon sequestration due to regenerative practices creates an opportunity to generate verified carbon credits within the supply chain to offset emissions and meet carbon reduction targets.
Challenges and Considerations
While the benefits of carbon insetting are clear, implementing these strategies is not without challenges:
Map showing regional change in soil organic carbon (SOC) from 2019 to 2022 using Deep Planet’s SOC monitoring tool
Measurement and Verification: Accurately measuring Scope 3 emissions and the impact of insetting projects can be complex. It requires robust data collection and analysis capabilities. Deep Planet’s soil organic carbon (SOC) monitoring tool supports wine businesses in measuring the impact of regenerative viticulture practices, understanding historical changes and trends in SOC variability and identifying opportunities for claiming verified carbon credits.
Initial Investment: Transitioning to regenerative practices and other sustainable initiatives often requires significant upfront investment. This is why Deep Planet partners with retailers and other wine businesses to design carbon insetting and regenerative viticulture projects that incentivise both suppliers and retailers.
Stakeholder Engagement: Successful carbon insetting requires buy-in from all stakeholders, including suppliers, employees, and consumers. Ensuring alignment and collaboration can be challenging but is essential for success.
Knowledge and Expertise: Implementing regenerative agriculture and other sustainable practices requires specialised knowledge and expertise. Deep Planet is here to offer our specialist industry knowledge, experience and tools to support your regenerative viticulture initiatives.
Final Thoughts
The adoption of regenerative agriculture practices and taking a proactive approach in carbon insetting will reduce Scope 3 emissions while advancing sustainable outcomes in the wine industry. By understanding and embracing these concepts, wine retailers and businesses can cultivate and communicate a more resilient and environmentally responsible path forward, ensuring that their artisan agricultural products continue to meet consumer expectations while safeguarding the planet.