Sustainability

MADEIRA WINE COMPANY

Sustainability Report

The Madeira Wine industry over hundreds of years has always played an important role on the island and we are very fortunate to be part of that history. As a family business with over more than 210 years of experience, we are always looking at ways to ensure that the business is passed on the next generation in the best state possible. In recent times, we have had to become much more aware of the rapid changes required to defend the sustainability of the business and to safeguard the social, environmental and economic impact that this industry has on the island. We have a commitment to work with all of our stakeholders to protect the future of this unique wine.

Certificates

B Corp Certified

The journey started in March 2020 and as from December 2022, our company is B Corp certified. Certified B Corporations, or B Corps, are companies verified by B Lab to meet high standards of social and environmental performance, transparency, and accountability. It’s allowed us to measure everything and make the necessary changes to align with our view on the future.

Being a generational family business and part of the B Corp movement allows us to work towards leaving the company, its stakeholders and the planet in a better place for the next generation.

Quality Control Certificates

ISO 9001:2015 Quality Management System

Obliges the company to demonstrate its ability to consistently provide products and services that meet customer and applicable statutory and regulatory requirements, and aims to enhance customer satisfaction through the effective application of the system, including processes for improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements.

Environment-related Certificates

ISO 14064-1:2018

Establishes guidelines for the quantification and reporting of greenhouse gas (GHG) emissions and their removals. It is widely adopted globally, particularly by organizations committed to sustainability and environmental management, being applied in over 100 countries and various sectors, including manufacturing, energy, and food and beverage industries. The standard also promotes transparency and external verification, supporting efforts to achieve sustainability goals.

At Madeira Wine Company, the 2021 inventory included scope 1, 2, and some scope 3 emissions, resulting in a carbon footprint of 1.4 kg CO2e per liter of wine. The report was prepared in accordance with the GHG Protocol and the requirements of ISO 14064-1:2018, and was validated by an independent verifier. This process allows us to set reduction targets and adopt concrete measures to minimize emissions, contributing to the global commitment to reducing GHG emissions in the wine sector.

BRC 8 (British Retail Consortium) certification - Classification AA+

The BRCGS Global Food Safety Standard has set the benchmark for nearly 25 years. Adopted by over 22,000 sites in more than 130 countries, the standard is accepted by 70% of the top 10 global retailers, 60% of the top 10 quick-service restaurants, and 50% of the top 25 manufacturers.

Developed with input from industry, it provides a framework to manage product safety, integrity, legality and quality, and the operational controls for these criteria in the food and food ingredient manufacturing, processing and packing industry.

Research and Development

IMPACT III - The Impact of Technology on the Quality of Madeira Wine
Programme: PROCiência2020

In recent years, Chris Blandy, the 7th-generation family member and CEO of Madeira Wine Company, alongside award-winning winemaker Francisco Albuquerque and his team, has spearheaded various R&D initiatives to deepen their understanding of the intricate Madeira wine ageing process. One of the key outcomes of these efforts is the research project IMPACT III – The Impact of Technology on the Quality of Madeira Wine – conducted in partnership with the University of Madeira (UMA).

This study involved monitoring 12 ageing warehouses across two very distinct locations: Blandy’s Wine Lodge in Funchal and the winery in Caniçal. For years, temperature and humidity were tracked every five minutes, generating regular data that enabled the enology team to gain valuable insights into the real conditions affecting the wines during the ageing process.

This enables the team to age wines in specific locations to optimise the conditions for each varietal. Based on the research to date, was concluded that all varietals benefit from the warmer conditions in Funchal during the early stages of ageing. However, Sercial and Verdelho varietals age better after 3-5 years in the cooler, more humid conditions of Caniçal. With these findings, the winemaking team, supported by their trained group of internal tasters, continues to refine their understanding of how climate and environmental factors influence the wine.

The outcome of this research has shaped Blandy’s new 10-year-old range, which combines traditional techniques with a detailed understanding of how each varietal evolves over time. The launch of this range marks yet another milestone in the company’s legacy, reaffirming its position as a pioneer in the Madeira wine world. It invites wine lovers to embark on a journey where tradition meets innovation, and new drinking trends are explored.

Learn more about the research

Learn more about the new Blandy's Madeira 10YO range

People and Community

People & Community

We have created specific HR programs for our staff at the company, that include programs on health and wellness and health risk assessment, life skills training for staff and their families, sponsored programs for continued educational credentials and external professional development opportunities. We also provide financial support to those members of staff whose children attend University. Members of the company also work on individual social projects in the less favoured communities around the island.

Through the Blandy Group, we have also developed the Blandy Academic Scholarships that are accessible to those students at the University of Madeira (UMa) who have financial difficulties and high academic performance.

Every year the group donates to a list of charitable associations, that can be found https://www.blandy.com/en/

ASAS – Ajuda Solidária Ambiental e Social

Through our social and environmental program ASAS, the Company has a 3-year plan to develop our presence on our island through environmental and social programs.

Production

Vineyards

The company directly manages a total of 7 hectares across the island. In 2023 we were awarded 'Integrated Production' certification (AgriCert) at our Quinta vineyards.
We are focused on regenerative agriculture through no-till practices and the use of cover crops. At Quinta de São Jorge in the north our flock of sheep graze between the vines, therefore cycling nutrients back into the soil as well as controlling vegetation and acting as a natural fertilizer. Ducks and chickens also play a role in weed and pest management (and lay the best eggs on the island). During the winter period, we shred the winery residual biomass and return it to the vines as a mulch which serves to increase humus content. These practices together help improve soil health – essential to better quality grape production.

During 2023, we initiated an R&D program in collaboration with the University of Madeira to study the impacts of climate change on viticulture on the island, while also developing a project to implement “Precision Agriculture” in our vineyards.

We are also developing with ViniPortugal, “The National Reference for Sustainability Certification” throughout the company and working with over 330 individual growers throughout the year to support them in developing best practices on their family properties.
In 2025, we plan to launch an R&D program in collaboration with some units of the Regional System for the Development of Technology and Innovation (SRDTI). This initiative aims to explore the impacts of different terroirs on wine production while also developing a project to implement precision agriculture in our vineyards. These efforts are designed to address the challenges of climate change and enhance sustainability

QUINTAS	VARIETAL	AREA (M2)	YIELD (Kgs)
QUINTAS	VARIETAL	AREA (M2)	2023	2022
Quinta de São Jorge	Malvasia SJ	33900	34578	30932
	Verdelho	4800	1047	2305
	Sercial	1300	400	456
Quinta de Santa Luzia	Bual	4900	8898	8800
	Verdelho	2500	1055	1932
	Terrantez	1000	820	539

Environmental Sustainability

We believe that small changes have a positive impact on preserving our planet and reducing our ecological footprint. Our environmental commitment aims to promote a culture of sustainability in all stages of our operations, from grape cultivation to wine production.

Changes over the years:

In 2014, we initiated the installation of 440 solar panels capable of producing 55,000 kWh of electricity resulting in an annual electricity reduction of 28%.
We added 2 new solar water heating systems for use in equipment cleaning and team showers.
We implemented a system to monitor our internal carbon footprint and regularly seek ways to improve our efficiency and reduce our carbon footprint
From a green mobility perspective, we are gradually transitioning company vehicles with hybrid or electric cars
We replaced all disposable plastics (such as coffee cups, water bottles, etc.) with sustainable alternatives.
In 2020, we decided to change the bottle type for all our 3-year wines to a bottle that is 35% lighter. In a normal year, the total weight reduction would be approximately 61,180 kg.
We replaced our traditional plastic T-Top cork with a wooden T-Top cork made from sustainably sourced wood.
In 2022, we achieved B-Corp certification, reflecting high standards of environmental and social performance, with transparency and responsibility.
In 2023, we obtained ISO14064 certification for the 2021 Carbon Footprint Report.
We implement 100% ground cover in our vineyards, a technique that helps prevent erosion, improve nutrient retention, and capture carbon in the soil.
Since 2021, we have been measuring the impact of our sustainable farming practices and have found that they help retain approximately 9 tCO₂e per year through ground cover.
The biomass of the vines naturally sequesters carbon, contributing to climate resilience. Carbon sequestration through photosynthesis in our vineyards has increased from 16 tCO₂e in 2021 to 21 tCO₂e in 2023, reflecting the growing productivity of the vines.
7G's agricultural emissions have decreased by 16% due to the adoption of more sustainable practices.

Sustainability and Environmental Impact Reduction Actions to be Developed in the Next 3 Years:

Annually certify the company's Carbon Footprint report with ISO14064 certification.
Become a member of the International Wineries for Climate Action (IWCA) group.
Reduce the amount of CO2 produced per liter of wine sold.
Decrease the amount of water consumption per liter of wine sold.
Increase the installed capacity of photovoltaic energy production.
Ramp up the proportion of renewable energy consumption.
Enhance energy efficiency by replacing obsolete equipment in the production area.
Invest in the study of calculating CO2 capture from planted areas (including vineyards and other types of plantations) to determine MWC's contribution to offsetting the impact of greenhouse gas emissions
Replace current lighting with LED in the Production Cellars.
Substitute the current cold and heat production system for greater energy efficiency.
Implement compensation projects.
Promote awareness among employees on sustainability-related topics.
Increase recycling of segregated waste.
Encourage commitment from suppliers throughout the value chain.
Reduce the weight of bottles in other wine categories.

Resource Management:

Water: Monitor monthly water consumption to identify and rectify waste. Promote efficient and sustainable water use through technology investment and water reuse. Quarterly, water quality is assessed via external laboratory analyses.

Energy: Monitor monthly electricity and fossil fuel consumption to identify and rectify waste and usage issues. Promote energy efficiency including the increasing use of renewable energy (photovoltaic energy production) and investing in efficient technologies.

Waste Management: Monthly waste segregation monitoring to address potential recycling and valorization issues. Promote source waste reduction, by using more efficient packaging and sustainable production practices. Separate and valorize waste, incorporating composting practices.

Effluents: We conduct quarterly monitoring of the quality of the wastewater generated through external laboratory analyses.

Materials: Encourage the reduce of paper, plastic, and chemical usage by promoting sustainable alternatives. Use of lighter glass bottles to cut transportation-related carbon footprints while maintaining quality and safety standards. Monitor the market for viable, lighter, and sustainable packaging alternatives.

Carbon Footprint:
Carbon Footprint 2023

As part of our commitment to sustainability, we continuously monitor our carbon footprint to minimise the environmental impact of our operations. Our emissions inventory was prepared following the GHG Protocol and ISO 14064-1:2018 standard.

Total emissions: 2,040 tCO₂e, representing a 5% reduction compared to 2022 (2,149 tCO₂e).

Scope 1 emissions: Increase of 2% (132 tCO₂e) due to stationary combustion and biogenic fermentation.

Scope 2 emissions: Increase of 10% (163 tCO₂e) due to higher electricity consumption and significant reliance on the local energy grid, partially offset by solar energy (30% of total energy needs).

Scope 3 emissions: Reduction of 7% (1,744 tCO₂e) thanks to supply chain optimisation.

Efficiency Indicators
Emissions per litre of vinified wine: Reduced by 3% to 2.08 kgCO₂e/L.
Emissions per litre of bottled wine: Increased by 15% to 3.07 kgCO₂e/L, due to lower production levels.

We remain committed to adopting more sustainable and innovative practices to minimise our carbon footprint and contribute to a more responsible future.

Biodiversity Promotion and Environmental Awareness: We promote biodiversity conservation in our vineyards through sustainable practices, native habitat restoration, and environmental awareness. Our approach includes sustainable vineyard management, removing herbicides, minimizing synthetic fertilizers, and encouraging vegetation between vine rows. Furthermore, we aim to preserve native vegetation areas by restoring habitats and providing shelter for indigenous species. Our initiatives to raise environmental awareness among employees and the community consist of the following actions:

- Tree Day Awareness Action (21st March): Included a talk on the importance of forests and a hands-on activity where all Blandy Group employees received and cared for strawberry plants.

- Promotional Campaign "1 Bottle = 1 Tree": This initiative was aimed at our customers and resulted in 127 trees that will be planted this year in partnership with IFCN-Madeira, reinforcing our commitment to sustainability and environmental preservation.

We periodically promote environmental and social solidarity actions. If you wish to submit your suggestion regarding solidarity initiatives and projects that may eventually be supported by the company, you should send an email to: This email address is being protected from spambots. You need JavaScript enabled to view it.

Madeira Wine Company

Plataforma 3, Pavilhão T
Zona Franca Industrial da Madeira
9200-047 Caniçal
Madeira – Portugal

Tel: (+351) 291740 100
(call to national fixed network)

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w: www.madeirawinecompany.com

Blandy's Wine Lodge

Avenida Arriaga 28,
9000-064 Funchal,
Madeira – Portugal

Tel: (+351) 291 228 978
(call to national fixed network)

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w: www.blandyswinelodge.com