Fine wine and ESG considerations: Sustainability

In Bordeaux, 25% of properties have achieved Haute Valeur Environmentale (HVE) certification. Measures include the use of ploughing instead of herbicides or the use of electrical tractors. Organic and biodynamic viticulture requires even stricter practices: not using synthetic fertilizers or pesticides and reducing the levels of anti-oxidant agent SO2.

Sustainability has material impact on wine as an alternative asset.

Directly, the shift to organic results in better wines and increased demand. A recent academic study found that “third-party certified organic and biodynamic labels lead to improved ratings (+6.2 and +5.6 percentage points respectively) as compared to conventional wines."

Indirectly, prominent critics consider sustainability in the decision which wines to review. This impacts brand recognition, demand, and returns. Jane Anson in her recently published (and highly recommended) book Inside Bordeaux explains that this “was also one of my criteria when deciding which of the many thousands of Bordeaux chateaux to write about.”

The Wine Capital compiles sustainability data and integrates it in the investment process to empower environmentally-aware winemaking and enhance returns.