CX770027B: Sustainable Practice Report for Marlborough Wine Analysis

This report provides a comprehensive analysis of the sustainable practices implemented by Marlborough Wine, a leading wine producer, in response to the challenges posed by climate change. The report begins with an executive summary and an introduction that highlights the impact of rising global temperatures on the environment and the wine industry. It then delves into the organizational background of Marlborough Wine, its stakeholder analysis (including owners, employees, government, suppliers, and consumers), and the social and economic impacts of climate change on these stakeholders. A significant portion of the report focuses on the sustainable environmental practices adopted by the organization, including its collaboration with Sustainable Winegrowing New Zealand and the implementation of various certifications and initiatives to enhance sustainability. The report also addresses the legislative requirements for effective sustainable practices and concludes with a detailed plan that complies with these requirements. The analysis emphasizes the importance of sustainability for brand positioning and the need for the organization to be aware of climate change.

Running head: IMPLEMENTING SUSTAINABLE PRACTICE
Implementing Sustainable Practice
Name of the Student
Name of the University
Author Note

1IMPLEMENTING SUSTAINABLE PRACTICE
Executive Summary
This research report is an analysis of sustainable practices that organization Marlborough
Wine needs to perform against the climate change affecting the environment and wine
manufacturing. Global increase in temperature could influence physical, biological as well as
human systems. Shift in climate change as well as resulting change to weather patterns and
carbon dioxide range could cause shift to grape chemistry as well as resulting quality of wine.
Analysis indicates that New Zealand is a small open economy and the nation is constantly
affected by global macroeconomic environment. Findings indicate that Marlborough has
designed to deliver quality assurance, resolve consumer concern and eventually protect New
Zealand’s wine export market and deliver the best practice model for the producers.
Sustainability as well as qualities of a natural environment are the most significant aspect of
brand positioning of Marlborough Wine and the organization needs to be aware of that.

2IMPLEMENTING SUSTAINABLE PRACTICE
Table of Content
1. Introduction.........................................................................................................................2
2. Organizational background.................................................................................................2
3. Concept of stakeholders......................................................................................................3
4. Social impact on the customers..........................................................................................5
5. Sustainable environmental practice against the climate change.........................................6
6. Sustainable practices of the organization............................................................................8
7. A plan which complies with legislative requirement for the effective sustainable
practices....................................................................................................................................10
References................................................................................................................................12

3IMPLEMENTING SUSTAINABLE PRACTICE
1. Introduction
This report is a detailed analysis of sustainable practices of the organization
Marlborough Wine caused by climate change. Climate changed is caused by global rise in
temperature which triggers a set of negative influences on planet. Such effects often
interrelate with each other and increase violence, put the species at risk inhabiting the
environment with the inclusion of humans. It has been identified that global increase in
temperature could influence physical, biological as well as human systems. So, it is worth
telling that differences in the physical system of the planet can be identified in the melting of
poles but this can again be the factor for glacial regression, melting of snow, warming and
thawing of permafrost as well as the flooding of rivers. According to Gabzdylova,
Raffensperger and Castka (2009), climate change is a global change that has no borders and
to deal with it requires coordinated work by all nations. So, to deal with the climate change,
businesses, organizational bodies must apply a set of sustainable practices. By understanding
the climate change and importance of sustainable practices, this report provides an analysis of
sustainable practices that Marlborough Wine applied to deal with the climate change.
Following question is taken into the consideration throughout the analysis in the report.
 What is sustainability?
2. Organizational background
Decidedly, Marlborough is one of the most premium wine regions of the world and it gains
enormous global appraisal due its categories of wine and size. Marlborough at present known
as leading wine brand in New Zealand. Within the just few weeks, this wine manufacturer
embraced the small but wide diverse region, finding out the nuances produced by its
landscape to crafts that exhilarate in many forms of wine (Wine-marlborough.co.nz. 2019). It
has been identified that Wine Marlborough represents 510 grape growers as well as 141 wine

4IMPLEMENTING SUSTAINABLE PRACTICE
organizations. Forbes et al., (2009) mentioned that the Wine Marlborough has close working
relationship with New Zealand Winegrowers that partially fund organizations from levis
collected through the commodity Levis act 1990.
When it comes to sustainability, the wineries like Yealands Estate and Spy Valley
make the commitment of enhancing their sustainability practices. It has been identified that
Yealands is carboNZero certified winery and the firm has implemented a number of
initiatives to enhance energy efficiency with the inclusion of installation of social power,
launch of a bodydoll sheep to reduce weed spraying as well as lawn mowing and the growth
of 25 wetland areas (Wine-marlborough.co.nz. 2019). Thus, it can be added that Marlborough
firms are widely known as certified organic. It is worth telling that the organization is
involved in the sustainable development practices. However, climate change is a significant
concern for such wine manufacturer as the impact of climate change is transparently on the
stakeholders involved in the process including the end-users
3. Concept of stakeholders
As put forward by Andriof, and Waddock (2017), stakeholders could be any
individuals, organizations, society that certainly hold or has large stake in the business. This
fact indicates that a stake may be of significant interest in business, this means it could
include ownership, interest of property, legal interest, regulations and some moral rights. It is
quite certain that a stakeholder has strong influence on business or they are most likely to be
affected by business; they both can affect each other and together influence the business.
Type of stakeholders
Owners: It can be mentioned that owners are usually first line of stakeholders, this
means that owners significantly contribute to the capital of the business and they often have a
say in the business. It is noted that owners could be few in numbers but when it comes to

5IMPLEMENTING SUSTAINABLE PRACTICE
partnership, they appear large in numbers (Hauck et al. 2013). For example, the owner of
Wine Marlborough Simon Bishell and the co-owner Tracy Johnston are two stakeholders
holding the maximum stake in the business such as the capital (Hauck et al. 2013).
Employees: Employees of the organizations are usually considered as a group of
stakeholders that comes after the owners. Employees perform the core functions of the
business. Employees certainly gain both monetary and non-monetary benefits for the work
they do to function of the organization (Hörisch, Freeman & Schaltegger, 2014). However, it
is often observed that employees might also own a share in the company. For example, Stuart
Dudley is employed as a deputy chairperson of the company but the employee holds a
significant share in Marlborough Wine, New Zealand.
Government: As put forward by Andriof and Waddock (2017), every business in
some particular ways or the other comes within the realm of government authorities. In the
case of Marlborough Wine, New Zealand Government is a significant stakeholder.
Suppliers: Suppliers are another significant group of stakeholders as they provide the
raw materials and in fact the manufactured items. Hence, brand and suppliers must build a
sustainable relationship complying with the norms and policies. The major suppliers of
Marlborough Wine is Yealands Wine Group.
Press and Media
Like every business, wine manufacturer like Marlborough also faces the need for
communicating with press, television and emerging social media. This initiative is
fundamentally for the purpose of the advertisement or announcement or the image building.
For example, Marlborough is also engaged in the social media and its major social media
partners are Facebook, Instagram and Twitter.

6IMPLEMENTING SUSTAINABLE PRACTICE
Young generation: It has been identified that due to progressive westernization in New
Zealand, people of 21st generation often use the alcoholic items. So, here, heath of youth is a
significant concern that brand must have to take into account.
4. Social impact on the customers
It has been identified that grapevines are a geographically expressive crop, that are
being grown in distinct climate regimes across the globe which provides the ideal conditions
to produce high quality grapes. In this context, Sinha and Akoorie (2010), climate change is a
significant threat for wine business in general and for the winegrowers in particular. So
reality of climate change and man’s influence is admitted by scientists, vignerons, and
general population. Shift in climate change as well as resulting change to weather patterns
and carbon dioxide range could cause shift to grape chemistry as well as resulting quality of
wine. Thus, it can be added that quality of wine creates health concern for youth users.
Social impact on owners
It is certain that wine makers such as Marlborough Wine is most likely to be affected
by climate change, because climate change causes globalization or the rise of temperature.
Consequently, Vines are grown in a large variety of climatic situation such as the 35th and 50th
parallels in Southern Hemisphere and the 50th parallels in the Northern Hemisphere and
between the 30th and the 45the parallels in Southern Hemisphere (Marshall et al. 2010).). So it
is impossible to generate high-quality wines in tropical or the sub-tropical regions. Thus,
wine manufacturers are in the pressure of developing quality wine influenced by market
pressure and consumers.
Social impact on suppliers
It is certain that due to change in the climate and rise of temperature is a major
consequence and climate change significant affect viticulture both geographically as well as

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varietally. So, generally, it can be mentioned that consistent high state of temperature during
the phase of vegetative growth, flowering and throughout the growth berries, and extreme
heat can be the reason of premature veraison. This eventually cause high grape mortality
(Dodds, Graci, Ko, and Walker 2013). Thus, it can be mentioned that although the suppliers
of Wine Marlborough faces an increasing demand of wine items but climate and viticulture
are significantly affecting the profits of suppliers.
Economic impact of climate change on customers, government and suppliers
It has been identified that economy is one such thing that strongly influences the wine
production in New Zealand. According to Hughey, Tait & O'Connell (2005), New Zealand’s
farming base is in the need of a relatively complex economy. Nonetheless, if it is considered
from the perspective of consumers, it is worth stating that due to the stability in the economy,
wine lovers in New Zealand are able to afford price in return of a high quality wine.
Szolnoki, (2013) mentioned that New Zealand is a small open economy and the nation is
constantly affected by global macroeconomic environment. So, fluctuation is often observed
in New Zealand’s economy. Consequently, suppliers are one such stakeholder group that is
highly affected by economic fluctuation. This happens because when the availability of the
products are high, value of products is less.
5. Sustainable environmental practice against the climate change
It is significant that climate change is a significant issue and the brand like Marlborough
Wine should consider the major sustainable practices. Forbes and De Silva (2012) mentioned
that reducing poverty of most vulnerable populations by fostering environmentally
sustainable development as well as enhancing capacity to cope with the climate change and
disaster. It has been identified that the promotion wine in New Zealand often reflect the
significance of natural environment to New Zealand Winegrowers as well as the members.

8IMPLEMENTING SUSTAINABLE PRACTICE
Flint and Golici (2009) mentioned the fact that New Zealand Wine industry has had a
significant focus on environmental sustainability in the most recent years and this is led by
New Zealand Wine growers.
Marlborough Wine, by collaborating with the government, Sustainable Winegrowing
New Zealand has developed a formal environment system which was introduced in 1997, to
particularly vineyards as well as more recently for the winery operations. This environment is
particularly based on the scorecard approach with the help of the benchmark to persistently
enhance the sustainability of vineyard and wineries. Marlborough has designed to deliver
quality assurance, resolve consumer concern and eventually protect New Zealand’s wine
export market and deliver the best practice model for the producers. It can be stated that even
though the adoption of any environmental system is voluntary, Marlborough encouraged its
members to adopt sustainable winegrower New Zealand or kind of a certified programs like
ISO 14001, or the biodynamic standards. Furthermore, it has also been learnt that
involvement in some particular events has been restricted to those who particularly
manufactured wine under the recognized environmental sustainable pogroms. This could put
the members under the pressure adapt to EMS. This initiative eventually led to 90% of
national vineyard area which is being manufactured under the sustainable winegrower New
Zealand certification and this is expected to increase 20% by 2020 (Atkin, Gilinsky &
Newton, 2012).
As put forward by Pomarici and Vecchio (2014) global wine glut is most likely to treat
the cost reduction to particularly build a competitive edge of environmentally certified wines.
Some evidences indicate that there are capabilities for the technique of innovation and
implementation that are fundamental to deployment of environmental management functions.
So, this remains as the complementary elements that guides to normalize the relationship
between best practices as well as the cost advantage, which is certainly a significant concern

9IMPLEMENTING SUSTAINABLE PRACTICE
when developing organizational performance. This could be difficult for small and medium
size organizations but large firm like Marlborough Wine takes the initiative to deliver high
quality differentiated wine items at reasonable price through innovation.
6. Sustainable practices of the organization
Theory of reasoned action
It has been identified that theory of reasoned action to investigate environmental decision-
making. It can be mentioned that from source reduction preferences, to ethical behaviour or
to green consumerism, Theory of Reason action provides the scope for studying
environmental motivation for environment related to decision-making. Montano and
Kasprzyk (2015) mentioned that TRA is composed of two basic constitutes, attitudes as well
as the subjective norms. These components certainly affect the behavioural institution. This
means a person’s attitude towards the behaviour could be personal and it capture
Stakeholders’ concern addressed in sustainable organizational practices
It can be added that subjective norms are often measured and controlled directly by
asking the respondents to indicate whether, ‘Significant others’ could approve or disapprove
of a specific behaviour. So, when this behavioural influences are often measured, it helps to
determine how individuals or the groups of individuals or the agencies are considered the
sustainable practices are properly implemented (Vecchio, 2013).
It has been identified that the identity and the importance of sustainability issues take
place at the multiple range that are effectively in the internal and external to the winery
reasons. There is a perception that sustainability can be considered as the most significant
source of competitive advantages that can convert into a positive, environmentally conscious
image in the mind of customers that eventually led to an increased sales and brand loyalty
(Berghoef, & Dodds, 2011). Nonetheless, it is worth telling that wine manufacturers like

10IMPLEMENTING SUSTAINABLE PRACTICE
Marlborough Wine, is most likely to face a highly competitive environment according to the
decrease in per capita wine consumption, the increased internationalization of wine sales as
well as changes in the consumer taste (Herath et al., 2013). In addition to this, the knowledge
that stakeholders hold about the environmental issue is more of an important factors that are
associated with their environment revolving around the environmental issues that are
implemented forward into the subsequent purchases and brand loyalty towards the specific
wineries.
The execution of sustainable practise as the most core element of differentiation has been
identified as the most influential trend among the wine manufacturers. Furthermore, it is
always important to know the way end-product reaches customers particularly at the time of
taking the environmental issues into the account. For example, the issue of carbon emission
and food wine that are effectively considered in the journey from the vineyard consumption.
In addition to this, creating the base for wine tourism via promotion of the sustainable process
of onsite viticulture production as well as this is more of a path that are highly used to create
a competitive edge. Although, the approach is considered in favour of protecting sudden
environment. This indicates that this is not likely to be involved into the political, ecological
and global scale. So, to be sustainable in a proper way, the organization Marlborough Wine
needs to understand its environmental, social as well as economic effect particularly in the
supply distribution platform. So, to enhance the purchase intention of environmentally
responsible product such as the visitation, customers must understand both environmental as
well as individual product consequence. Furthermore, it is worth stating that economies of
scale remain fundamental to sustainability practices.
Innovation, cultural change and the co-operation are fundamental to the
implementation of sustainable practices on the basis of the studies in the Lodi wine region of
California. Such scenario must create a delicate balancing act, adequate balanced synergy

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between supply and the demand forces at work to gain a proper set of competitive advantages
as well as viable market position.
On the contrary, it can be also be added that inadequate institutional support certainly
has affected the adoption of sustainable practices by some Australian wineries. In the context
of increasing environmental challenges as well as international competition, support from the
large organizations like Marlborough, that include government, local agencies as well as
industry associations are significant required to guide the small winery operations (Flint &
Golicic, 2009). So, in winery industry particularly in New Zealand in general in their quest
for long-term environmental sustainability but at the same time maintaining a proper quality.
In the context of Marlborough, it is worth stating that environmental protection as well as
conservation practices are fundamentally the area of some contention within the sector. This
requires an achievement of a balance between the national as well as firm goals and the
approaches that are difficult to maintain.
7. A plan which complies with legislative requirement for the effective
sustainable practices
The organization Marlborough Wine needs to comply with the norms formulated by
Sustainable New Zealand Winegrowers. Hence, the organization considers the enforcement
that is undertaken through the external auditing of sustainable practices by SWNZ. The
major aim of this foundation is that it must have to provide best practice model that wineries
could utilize to particularly benchmark their environmental practices. These often help to
deliver a larger range of quality during the stage of production, while recognising that
sustainability is always a significant issue to the end users of consumers and it affects
whether they prefer to buy wines that are produced in New Zealand (Atkin et al. 2012). In
addition to this, the foundation also encompasses five core strategies that are developed to