Carolina Gotuzzo, VSPT’s sustainability director may be able to tick off several of the targets on her to-do list – CO2 emissions have been slashed by 47% since 2019, while the company has also cut 40% from its carbon footprint – a full five years earlier than the original 2030 deadline. Zero waste to landfill by 2030 is the next intermediate target en route to the ultimate goal of net zero, but despite these considerable landmark achievements, Gotuzzo is impatient to get more done.
She points out that VSPT had already been working in sustainability for 16 years, and therefore, when she was appointed to her current role as sustainability director two years ago, “I felt that all the low-hanging fruit and the quick wins had already been achieved".
Carolina Gotuzzo, VSPT’s sustainability director, has been in her role for two years
Post-COVID, it was also a time when sustainability was not necessarily at the top of everyone’s agenda, as the industry was dealing with more pressing matters such as recovering sales and focusing on boosting consumption.
“Of course, sustainability is hugely important for us, it’s embedded in our values and our strategy, but if you want to make big changes, it wasn’t the moment. And I totally understand that because the profitability of the business must come first. We cannot do anything sustainable if we are not being profitable. So we had to rethink our strategy and align the sustainability strategy with that of the business,” she explains.
This involved examining every aspect of the business, as sustainability is something that is not solely Gotuzzo’s responsibility but a part of everything the company does.
“Everyone must feel engaged and create an impact in their jobs,” she says. “So my goal was to relaunch the strategy and align it to the strategy of the business, and to recover the engagement with all the agendas little by little, and prioritise efforts with the highest business impact.”
VSPT has structured its sustainability strategy around three main pillars, the first being Climate Action, transitioning to a low carbon, climate positive business model. The company is close to achieving carbon neutrality in Scope One, with only 7.6% of direct emissions remaining, and is working on reducing emissions within the rest of the supply chain via collaboration with its producers and suppliers.
VSPT is using solar panels to generate its own energy at its wineries
It also aims to expand the use of renewable energy across all its production sites, with all Chilean operations now powered by 100% renewable sources, with the company generating over 40% of its own renewable electricity, 55% of which comes from solar arrays installed on its estates and 45% from a biogas plant in Molina that makes clean electricity from organic waste left over from the grape harvest. This makes VSPT one of the first wine groups in the region to reach this milestone, which has been achieved via a combination of clean energy, energy efficiency and verified carbon offsets.
Minimising waste
Minimising waste and optimising resources are another key tenet of the strategy, with VSPT aiming to achieve zero waste to landfill in all its wineries and vineyards by 2030.
Reducing water use is another main target, with winery water use per litre of wine produced already reduced by double-digit percentages through improved irrigation, the reuse of wastewater, and precision viticulture.
Meanwhile, increasing recycled content in packaging while reducing overall material use has also helped towards the Zero waste goal, with the majority of waste generated in production now earmarked for recycling, composting or repurposing, with landfill disposal almost eliminated.
Sharing values with communities is another important element of VSPT’s strategy, in which it supports local suppliers and small grape growers with training and transferring sustainable practices, and strengthens workplace diversity, equity and inclusion.
With all these pillars in place, how confident is Gotuzzo that net zero will be achieved by 2050?
“This is a very good question and one that our board of directors ask me every time I meet with them. We’re actively engaged and optimistic about what we are doing.”
She points out that already the company has slashed its CO2 emissions by almost 50%, meaning it is halfway to its target.
VSPT has already been able to cut its C02 emissions by 50%
“It is essential for us to achieve milestones on our way to becoming Net Zero,” she explains.
“These are very ambitious goals that require an interdisciplinary effort among different company areas, as well as the commitment of our suppliers and strategic partners, who play a key role in achieving the target.”
Full supplier support
The main challenge in reaching their goals, she says, has been addressing the issue within the whole value chain and getting all parties on board.
“It’s not easy, the shipping companies have to do their jobs as well and they have to accelerate their efforts to decarbonise their own industry. We are in the most southern hemisphere spot on the planet, so it’s not easy for us to deliver our wines in any other way, and shipping is not something that we can eliminate from our value chain. But we are very confident that they are doing a lot, and at least eight of the ten shipping companies that we use to transport our wines are committed to being net zero by 2050.”
She concedes that there is a perception that the shipping industry is not doing enough fast enough, but she points out that innovation takes both time and investment.
“They need to change their engines, their energy supply, and there are huge investments and technologies that have to be put in place. They also need to find a fuel power enough to give them the autonomy to move the cargo from one continent to another, a very long distance.”
The glass industry presents an additional, separate challenge, she adds.
“It’s not only the transportation in Chile, but we have a really different reality and context in terms of glass production. The glass suppliers in Chile are not as advanced as they are in Europe, and they are also struggling in terms of the business they have. They are managing to be profitable right now, but the good news is that Chile as a whole has committed to being net zero by 2050 so at some point all the legislation and regulation in the country will be following the same path.”
For example, Chile’s national grid is already supplied by between 40 – 45% renewable energy, with much of the grid coming from solar and wind power. “So it’s a national effort.”
Not only is the Chilean government on board with the sustainability message, but the country’s geography and weather systems make it well placed to harness energy from the sun and the wind, with the Atacama Desert in the north of the country holding much potential for expanding the use of solar energy.“We have the potential for solar energy to scale up. So at some point, whatever the glass industry does, the grid will be clean enough to supply all the industries in Chile.”
VSPT is working with its own suppliers to ensure its supply chain is as sustainable as possible
Lightweight bottles
VSPT’s average bottle weight is 390 grammes, which has been optimised because the company has prioritised lightweight bottles in its entry and retail category, enabling it to make concessions in its premium portfolio.
“We try to balance it out - we are optimised enough in the entry level segment so we can have more heavy bottles in the premium side. Whenever a new product is launched, we try to challenge them to look for the lightest bottle possible in the market, and we have been working a lot with the glass industry, trying to push the boundaries and challenging them to develop lighter and lighter glass. We know that in Europe there are already bottles of 320 grammes, and here in Chile we are experimenting with 340.”
However, Gotuzzo says she is reluctant to ship lightweight bottles from overseas simply to enable the company to claim it is using the lightest bottle in the market, but is trying to develop that capacity within Chile itself, a better, more long term sustainable solution.
As to the future, Gotuzzo believes that VSPT is well placed to face up to the ongoing challenges posed by global warming and climate change.
“I believe it actually represents a very good opportunity for us,” she insists. “It’s a way for us to connect with consumers through our initiatives and sustainable credentials."
She adds: "I think consumers are worried about their purpose and when they find products and companies producing in a way that resonates with their lifestyle and values, that will enable us to reach them.”
* You can read more about VSPT and what it is doing in the business at its website here.
* VSPT is a commercial partner to The Buyer. Click here to find out more about the business.
