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AVL Wines announces Net Zero 2040 commitment


Company News | August 2022

Global wine leader reveals sustainability roadmap: “Creating good times for our future.”

Leading global wine company AVL Wines launches ESG-guided sustainability roadmap and journey to Net Zero 2040.

The ASX-listed company behind pillar brands McGuigan, Tempus Two, Nepenthe and more, is committed to an ESG strategy that encompasses environmental impact and climate action, alongside social impact initiatives to support communities and good corporate governance

The announcement, as the company releases its FY22 results, is an intentional shift to a more balanced and transparent approach.

AVL Wines has set an ambitious climate target – informed by current climate science – to achieve Net Zero carbon emissions by 2040 across the entire value chain.

Taking an evidence-based approach to achieving Net Zero, AVL Wines has set a long-term target to reducing Scope 1, 2 and 3 emissions by 2040. In the near term, the company will reduce absolute scope 1 and 2 emissions 42% by 2030 and reduce scope 3 emissions 52%.

AVL Wines’ Chief Executive Craig Garvin says the ESG journey is important, and he is pleased to be announcing not only the positive financial results but the company’s progress on environmental and social impact.

Garvin says, “Sustainability is paramount to our success in the future. It’s a critical issue but also one of the biggest opportunities of our time. It’s more than a social license, it’s a value creator and a key driver for innovation. Consumers want to support brands and businesses that put people and planet first and we’re seeing this in the purchasing decisions of our customers. We are undertaking world-class initiatives and embedding sustainability into our DNA. We are on a journey, with an ambition to be net positive in everything we do.”

AVL Wines’ Head of Sustainability Lucy Nash says that the renewed focus on understanding the impact of the business is an opportunity to take an industry leadership position.

“This process has enabled a more robust, progressive, and long-term roadmap to fuel our progress and future-proof our business. Our ambitious science-based approach will propel the business to Net Zero by 2040, a decade ahead of the standard 2050 target,’’ says Nash.

Emission interventions within the company’s industry-leading Net Zero target include 100% transition to renewable energy sources, addressing downstream transportation emissions and innovating around sustainable packaging solutions to meet 2025 National Packaging Targets.

From a social impact perspective, AVL Wines is committed to engaging and nourishing the communities in and around the company. Internally, employee health and wellbeing is a focus on the path to becoming an employer of choice. Recently added benefits include sabbaticals, superannuation payments on parental leave and mental health training for managers, increasing employee engagement to 70%, in the past year, landing AVL Wines in the top quartile of Australian businesses.

Nash goes on to say, “We harness the power of partnerships to drive progress and authenticity in a collaborative and creative way.”

The leading winemaker actively promotes responsible consumption of alcohol through moderation innovation including the market-leading McGuigan Zero, Tempus Two Zero, Lighten Up and a strategic partnership with Sarah Jessica Parker and Invivo on the low-alcohol range Sevenly. The company also promotes education and holds key partnerships with DrinkWise in Australia and Community Alcohol Partnerships (CAP) in the UK. Additional achievements by the business include AVL Wines being recognised by the Drinks Association for most improved gender equity for females in leadership in 2021.

The announcement comes as the wine company releases its FY22 results, on track with its strategic plan, delivering underlying profit, before SGARA, of $21.5 million despite inflationary, foreign exchange and logistics pressures.