Gioia Small, Regional Manager Sustainability and Vintrepreneur, Treasury Wine Estates- Presentation at the United Nations Association of Australia (Victorian Division) Corporate Sustainability Leadership Seminar ‘Corporate Water Valuation: Accounting for Risks and Impacts, Valuing Ecosystem Services’ held on Monday 29 April 2013, in partnership with National Australia Bank Held in support of the International Year of Water Cooperation, seminar addressed some of the challenges and opportunities associated with corporate water valuation, as well as local actions and global tools and initiatives in this area. It highlighted some examples of what Australian businesses are doing, alongside government and NGOs, to measure and manage their risks, impacts and dependencies on water. Guest Speakers & Panelists included: • Rosemary Bissett, Head of Sustainability, Governance & Risk, Enterprise Risk, National Australia Bank • Matt Kendall, General Manager, Planning and Evaluation Group, National Water Commission • Carl Obst, Editor, UN System of Environmental-Economic Accounting (SEEA) • Jean-Michel Seillier, Regional Manager Victoria, Veolia Water • Gioia Small, Regional Manager Sustainability and Vintrepreneur, Treasury Wine Estates • Michael Spencer, Secretary, Water Stewardship Australia and Fellow, Department of Business, Law and Taxation, Monash University Facilitator: • Rob Gell, Environmental Entrepreneur, Chairman of UNESCO Western Port Biosphere, and Chair of Wildlife Victoria More information available at: http://www.unaavictoria.org.au/education-advocacy/masterclasses/corporate-water-valuation-seminar/

1. Turning Water into Wine
Gioia Small, Regional Manager Sustainability, 29th April 2013

2. Agenda
1. Industry snapshot
2. Importance of water
3. Top risks
4. TWE water risk tool
5. Water strategy

3. Industry snapshot - 2012
3
1. Australian wine companies 2,572
2. Vineyard area 148,509 ha
3. Winegrape intake 1,660,127 tonnes
4. Wine production 1,100 ML
Source: http://www.winebiz.com.au

4. Water is an important resource
4
Need to understand and manage the risks

5. Risk 1. Climate change – it’s getting warmer and drier
5
Source: http://www.bom.gov.au

6. Risk 2. Declining water resources
6
Source: http://www.mdba.gov.au

7. This is what it looked like at the peak of the drought
7
Source: http://www.mdba.gov.au

8. Risk 3. Water policy and market responses
8
Source: http://www.waterfind.com.au

9. Risk 4 – Declining water resources and impact on water
quality
9

10. TWE Water Risk Assessment Tool
10
Current
water
demand vs
supply
Current
water
quality
Future
water
demand vs
supply
+ +
Overall
site risk
=
How well do
we meet our
production
targets with
the water
resources we
have?
Average
salinity levels
for the last 5
years
Aridity index
for 2015 and
2030 derived
from climate
change
modelling
Generates an
overall score
for our
vineyard
asset
Underpinning Knowledge

11. Our Water Strategy
11
1. Optimise our water assets
2. Prepare for a water constrained
future
3. Contribute to the long-term
environmental sustainability of
Australia
4. Be recognised for sustainable water
management