Feasibility of Science-based targets in the Wine, Champagne & Spirits sector : A study of five companies’ cases

Abstract: The number of companies seeking to match with the Paris agreement to be in line with the best climate science has been skyrocketing. This is particularly crucial for agriculture, forest and other land use sector which represents 25% of anthropogenic emissions. However, nothing yet proves the feasibility of these commitments. Thus, this paper aims at understanding more about the feasibility of science-based-targets and net-zero emissions for the sector of Champagne, Wine & Spirit by comparing the climate strategies of five different companies.  To carry out this research, a quantitative data analysis of reduction action plans has been conducted as well as a qualitative data analysis of five in-depth interviews made with representatives of these companies. The quantitative data analysis brought forward that those absolute targets in line with the 1.5°C of global warming cannot be proven to be theoretically feasible, since even the best available reduction plans do not lead to the objectives. However, the physical intensity target of reducing emissions per bottle sold seems more likely to be achieved, bearing in mind that this target is less ambitious and not compatible with the 1.5°C target.  Even though near-term reduction objectives seem unfeasible or at least very challenging, companies are strongly valuing climate issues and consequently are ambitious. These companies have all a strong ability to conduct change management system and implement reduction actions. Nevertheless, some obstacles exist, the main ones being related to the business model and technical limitations to contracting emissions. For instance, after using some of the levers already identified, glass emissions are still very high, which makes it necessary to explore the reduction potential of glassmakers or to find stronger breakthrough solutions to reduce glass use.  Furthermore, the analysis pointed out the issue of combining growth of production and absolute reduction of emissions. It is much easier to align with the 1.5°C scenario with a scenario of no growth in production, a model already in use for the champagne sector. To better grasp that tackling climate change requires systemic thinking and discussion of the business model rather than addressing it as a technical issue, a risk and opportunity analysis could be carried out. These analyses may highlight the interests to act in the sense of an ecological transition and may help defining new economic models.  Finally, the Net-Zero emissions objective seem unfeasible for the companies studied, which cannot imagine affording -80% reduction by mid-century. However, they have all started working on enhancing their potential of sequestration, which is the second step toward net- zero, Removal of CO2 that could counterbalance incompressible emissions and support participation in global carbon pool preservation goals.