Peter LEHMANN of the Barossa

Environment Report

We believe it is our responsibility to ensure available resources are used efficiently, the effects of the winery operations on the environment are minimised, and materials are recycled wherever possible. PLW regularly conducts awareness seminars for staff to reinforce procedures designed to reduce the Company’s impact on the environment.

A study of 135 sectors making up the Australian economy prepared jointly by the CSIRO Sustainable Ecosystems and the University of Sydney indicated the wine industry rates 15% below average on greenhouse emissions; 65% below average for land disturbance; and uses water at twelve times the economy wide average. The study estimated process water, mainly used to wash down equipment, at 2,000 litres per tonne of grapes crushed.

The major effects of the PLW operation on the environment have been analysed as –

• Use of water 
• Disposal of winery wastewater 
• Energy use 
• Greenhouse emissions 
• Storage of chemicals 
• Use of packaging materials and their recycling/disposal 
• Effect on neighbours – odour, noise, dust and activity 
• Aesthetics and biodiversity

PLW appointed a Sustainability Manager in May 2010 and part of this role is to develop and implement plans to improve the use of resources.  Analysing data is key to determining better ways to use water, electricity and gas.  Regular staff training sessions to increase awareness of the effects of the winery’s operation on the environment are held to communicate PLW’s environment objectives and initiatives.

Weather conditions and tonnes processed impact on water and electricity usage.

Water is used in the vineyards to enhance grape quality.  To conserve water we use drip irrigation systems in the Company owned vineyards to control the amount of water used for irrigation.  These systems supplement the natural rainfall of the region.  Sources for supplementary irrigation include piped river water, dams and bores.  Grape growers who supply 98% of PLW’s fruit also use drip irrigation systems.

Water is used in the winery to wash down plant and machinery as well as to clean barrels and tanks.  PLW was successful between 2002 and 2005 in reducing the volume of water used.  Usage in 2007 rose to just below the industry average of 2,000 litres per tonne as even though the tonnage was reduced a similar amount of water is required for cleaning.  The lower tonnage of the 2012 vintage, combined with a compression in the timing of grape varietal intakes resulted in increased water usage, much of which is used for cleaning when swapping between grape varieties during crushing.

Wastewater is made up of washings, stormwater from designated areas and some waste processing.

The disposal of winery wastewater is a critical issue and PLW has installed a winery wastewater treatment plant which uses a system of screening, aeration and solids removal. The winery wastewater is pumped through a series of tanks and ponds.

PLW is becoming increasingly efficient in the capture and processing of wastewater and also the extraction of solid pressings. The by-product of solid pressings is deposited on vacant land to dry and then used as nutrients in the vineyard.

We continue to remove caustic washings from the wastewater treatment process. The reduction in the sodium level in the recovered water benefits the soil when the water is used for irrigation. The caustic washings are sent offsite where the processor recovers the tartrates.

The standard required for the treatment of wastewater for reuse is getting harder to achieve though as reduced water usage results in more concentrated wastewater. Also the stored water is subject to evaporation and the remaining water becomes more saline. We have installed a pipeline to nearby North Para Environment Control (NPEC) where the processed water is further treated and returned to PLW to irrigate the lawns and gardens.

In 2007/08 PLW planted 1.5 hectares of vacant winery land with sugar gums (Eucalyptus cladocalyx). The small to medium tree is endemic to South Australia and is quite hardy and useful for windbreaks and wood production. This woodlot is now approaching maturity and we will be able to commence sustainable harvesting of firewood for use at Cellar Door in the near future.

Good energy management seeks to reduce energy consumption, reduce energy-related emissions, alleviate overload on electrical transformers and circuits and lower expenditure.

Electricity is the major source of energy used with the remainder derived from the combustion of fossil fuels such as natural gas, LPG and diesel.

Refrigeration plays an important part in the winemaking process as it is used to control the temperature of wine/juice during production. We continue the project whereby energy usage for different processes and particular equipment is monitored to determine actions to reduce energy consumption and expenditure.

Greenhouse emissions

Electricity and LPG consumption, wine fermentation and transport are the major sources of PLW emissions. The chemical process of converting the sugar in grapes to ethanol releases CO2. PLW uses ammonia as the refrigerant and consequently the technology does not require the use of CFC’s and their emission into the atmosphere.

The composition of the PLW car fleet has been reviewed and we are changing to more energy efficient vehicles with lower emissions. PLW is a member of Greenfleet which promotes fuel efficient technologies to reduce emissions. It also maintains a native reforestation and carbon program to sequester CO2 greenhouse emissions from the transport sector.

PLW has reported its emissions to the National Pollutant Index (NPI) since 2003. The NPI database at www.npi.gov.au and www.epa.sa.gov.au contains information on the types and quantities of pollutants being emitted from a range of industrial, commercial, transport and household activities.

The collection of NPI emission information is designed to:

• help in environmental planning and management
• promote waste minimisation and cleaner production by industry and business, leading to energy and resource savings
• satisfy community demand for accessible information on pollutant emissions to the environment
• increase community awareness of the contribution to pollution from many different sources.

PLW emissions are ethanol (C2H5OH): an alcohol with low enough toxicity for (moderate) human consumption and volatile organic compounds: a general term which refers to a large and diverse group of substances, including hydrocarbons, oxygenates and halocarbons that readily evaporate at room temperature. Emissions relate to fermentation of the wine and bottling activities. PLW’s emissions are comparable to those of other similar sized wineries.

* Increases from 2010 are attributable to the introduction of a broader NPI emissions scope.

Carbon Footprint

PLW is measuring its carbon footprint by using the Australian Wine Carbon Calculator, a reporting tool developed by the Winemakers' Federation of Australia for the wine industry which is compliant with the Greenhouse Gas Protocol (GHGP). This tool will provide the basis for accurate, transparent and consistent reporting each year. Although fermentation of wine is a direct emission source, resultant CO2 is not reported as it is categorised as part of the short-term carbon cycle whereby there is a rapid exchange of carbon between plants and animals through respiration and photosynthesis. It is assumed that the emissions from fermentation are in balance with the vineyard sequestration even though the vineyards may be separate enterprises to winery enterprises.

The Greenhouse Gas Protocol separates the source of greenhouse emissions under three scopes to ensure there is no double counting between enterprises. PLW is working through the Calculator guidelines with the focus on scope 1 direct emissions and scope 2 indirect emissions (purchased electricity). We are assessing requirements for the scope 3 indirect emissions which emanate from the extraction and production of purchased materials, transport and offsite waste disposal.

Some overseas customers are expressing concern about the carbon emissions form the transport of wine across vast distances. Emission factors vary by transport mode and the following provides guidance on the calculation of transport GHG emissions = freight weight (tonnes) x freight distance (kms) x emission factor (truck/train/ship/air)

Chemicals are stored securely in the winery and there are dedicated areas for mixing. There are operating procedures for the use of chemicals and the recovery/disposal of spilt chemicals has been addressed in PLW’s environment contingency plan. There are separate chemical storage sheds and chemical spray pads on the Company owned vineyards.

PLW requires the independent grape growers to use specified pesticides and herbicides responsibly in the vineyards. The spray regimes for each vineyard are monitored to ensure compliance with relevant government and export regulations. We are fortunate to grow grapes in a district which is not prone to disease and thus sprays are not used extensively.

PLW plants shrubs and trees on the winery land to provide windbreaks, prevent soil erosion, provide habitat suitable for birds, and reduce the obtrusiveness of the building structures on the landscape.

PLW aims to provide an aesthetically pleasing environment for visitors to the Cellar Door outlet and its surrounding grounds. A computerised watering system, which operates at night when losses from evaporation are lower, has been installed to minimise water usage. The treated winery wastewater is being used to irrigate the area.  Mulch is used on the garden beds to reduce weeds and thus minimise the use of herbicides and watering.

Environmentally friendly features such as the collection of rainwater for water use and the installation of a solar powered hot water system have been installed into the extension on the western end of the Cellar Door building.

In cooler months wood fires warm the Cellar Door building. A 2003 CSIRO study for the Australian Greenhouse Office reported “sustainable firewood production systems have the potential to reduce carbon dioxide emissions”. In future PLW will be able to harvest wood from its sugar gum plantation for use at Cellar Door.

To protect the nearby watercourse PLW participates in the local water resources board’s initiative to remove exotic trees and shrubs and re-establish indigenous plants along the North Para River bank side. Further along the river, a bush garden has been established to provide a reliable source of seed for revegetation projects and the preservation of the Barossa Valley’s environmental heritage.

Packaging is made up of a number of components including bottles, corks, closures, capsules, labels and cartons.

• Bottles - as part of Australian recycling programs, used bottles are returned to the manufacturer where they are broken down with the resultant material returned to the furnace and used again to manufacture glass.  PLW has moved to lower weight glass for its proprietary bottles. The use of lower weight glass for popular wines which are exported continues to assist in lowering the weight of freight movements.
• Corks – a renewable resource
• Aluminium closures – these are being used increasingly instead of corks and are recyclable
• PVC capsules – are non-recyclable with usage reducing as we move to aluminium closures on our wines
• Labels – PLW purchases 98% of the labels from a local printing company which uses waterless inks and new technology to reduce paper wastage, toxic by-products and volatile organic compound emissions
• Cartons – approximately 95% of the cardboard purchased by PLW for use as cartons to package wines is manufactured from recycled material
• Shrinkwrap is used to protect cartons of wines shipped on pallets. We collect the incoming shrinkwrap and send it to the recycler for processing.
• Recyclable materials are used to package visitors’ purchases from PLW’s Cellar Door.

PLW is a member of an industry group which provides data on how much material enters the packaging waste stream from the distribution and sale of its wine to the Australian Packaging Covenant.