Climate Change Data

Treasury Wine Estates Limited

Climate Impact & Sustainability Data (2023-07 to 2024-06)

Reporting Period: 2023-07 to 2024-06

Environmental Metrics

Total Carbon Emissions:16 ktCO2e (Scope 1 & 2)
Scope 1 Emissions:11.4 ktCO2e
Scope 2 Emissions:4.6 ktCO2e
Scope 3 Emissions:404.8 ktCO2e
Renewable Energy Share:80%
Total Energy Consumption:388.9 GJ x 10^3
Water Consumption:20.9 GL
Waste Generated:33.3 kt
Carbon Intensity:0.4 kg CO2e/9LE

ESG Focus Areas

  • Building a resilient business
  • Fostering healthy and inclusive communities
  • Producing sustainable wine

Environmental Achievements

  • 66% reduction in greenhouse gas emissions (scope 1 and 2) since FY21
  • 80% of electricity usage from certified renewable sources in FY24
  • 94% of sites operating in high-risk catchments have smart water meters installed
  • 99.2% of owned and leased vineyards hold regionally relevant certification

Social Achievements

  • 39% reduction in the 3-year rolling Serious Safety Incident Frequency Rate
  • 47.2% women in senior leadership (increase of 2.7 percentage points)
  • Launched in-house R&D facility for no-alcohol and low-alcohol products
  • Rollout of health warnings and energy labelling on products

Governance Achievements

  • Completed supplier risk assessments for 100% of contracted spend
  • Amendments to WOSC and ARC Charters to clarify responsibilities for sustainability and climate-related disclosures
  • Improvements to Online Compliance Training and Whistleblower programs

Climate Goals & Targets

Long-term Goals:
  • 100% recyclable, reusable, or compostable packaging by end of 2025
  • 50% average recycled content in product packaging by end of 2025
  • Complete Secondary Risk Assessments for 100% of High-Risk Contracted Suppliers by end of FY26
Medium-term Goals:
  • Net Zero emissions (scope 1 and 2) by 2030
  • 50% women in senior leadership by 2025
  • 42% overall female representation by 2025
  • Develop a global farming framework supported by metrics
Short-term Goals:
  • Install smart water meters at 100% of high and medium-risk sites by end of FY25
  • 100% renewable electricity by 2024
  • 100% of TWE brand products labelled with energy information and general health warning by 2025 (excluding products below 375ml and DAOU products until July 2026)

Environmental Challenges

  • Water scarcity in high-risk catchments
  • Climate change impacts on yield, quality, and vintage timing
  • Supply chain disruptions
  • Scope 3 emissions
  • Availability of recycled content for packaging
Mitigation Strategies
  • Installation of smart water meters
  • Climate risk assessments and adaptation measures (e.g., enclosed vineyard canopy)
  • Improved supplier risk assessment and governance
  • Engagement with suppliers to reduce scope 3 emissions
  • Initiatives to improve packaging recyclability and recycled content

Supply Chain Management

Supplier Audits: 958 Primary Risk Assessments completed in FY24

Responsible Procurement
  • Responsible Procurement Code (RPC)

Climate-Related Risks & Opportunities

Physical Risks
  • Variations in yield and quality
  • Changes in growing season temperatures
  • Increased aridity and water scarcity
  • Increased frequency and severity of extreme weather events
  • Increased pest and disease pressure
Transition Risks
  • Regulatory changes
  • Market shifts
  • Stakeholder pressures
Opportunities
  • Development of climate-resilient viticultural practices
  • Investment in renewable energy and energy efficiency

Reporting Standards

Frameworks Used: GRI, SASB, TCFD (replaced by ISSB and AASB), UNGC, UN SDGs

Certifications: ISO 14001, SA8000, BRCGS, FSSC 22000, HACCP, Sustainable Winegrowing Australia (SWA), Sustainable Winegrowing New Zealand (SWNZ), Certified California Sustainable Winegrowing (CCSW), Fish Friendly Farming, Napa Green Winery, Lodi Rules, Landsmart, Oregon LIVE, VIVA Sustainable Wine, Haute Valeur Environnementale (HVE), Label Cultivons Demain

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 3 (Good Health and Well-being)
  • Goal 5 (Gender Equality)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 17 (Partnerships for the Goals)

TWE's sustainability strategy aligns with these SDGs through various initiatives

Sustainable Products & Innovation

  • No-alcohol and low-alcohol wines

Awards & Recognition

  • Formes de Luxe Award for Penfolds Bins gift box design
  • South Australian Wine Industry Awards Safety Champion Award