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Life Cycle Assessment and the New Zealand Wine 
Industry: A tool to support continuous environmental 
improvement 
 
 
 
A thesis presented in partial fulfilment of the requirements for the degree of  
Master of Environmental Management  
 
in  
Life Cycle Management 
 
at Massey University, Wellington, New Zealand.  
 
 
 
 
 
Martin Thomas Barry 
2011 
 
 
ii 
 
 
 
 
“If we want things to stay as they are,                         
things will have to change” 
 
Giuseppe di Lampedusa, 1896 - 1957
 
 
iii 
ABSTRACT 
 
 
As the marketplace becomes increasingly environmentally conscious, demonstration of environmental 
credentials and evidence of continuous improvement will likely become of increasing strategic and 
economic importance to New Zealand wine exporters. Keeping pace with such market changes will 
ensure local exporters remain competitive against other wine producing countries, and help secure their 
share in important foreign markets such as the UK.  
This thesis uses Life Cycle Assessment (LCA) to identify how the New Zealand wine industry can improve 
its standard of environmental management and inform its practice of environmental labelling. Through 
the identification of environmental hotspots, use of sensitivity analysis, and normalisation of results, all 
using a product life cycle framework, this research provides the industry with some direction as to how 
to better measure, manage and reduce its environmental impact, and identifies various ways of 
improving the quality of information being conveyed to the consumer through environmental labelling. 
This research shows environmental improvement opportunities lie particularly in the areas of packaging 
systems, frost protection, agrichemical application, waste management, energy efficiency in the winery, 
and crop regulation. It provides some evidence to indicate that the carbon footprint is not the most 
significant environmental impact in the wine life cycle, and that other environmental impacts should be 
considered in development of improved environmental management systems. It also highlights the 
importance of using a standardised methodology in environmental labelling programmes. 
 
 
 
 
 
 
iv 
 
ACKNOWLEDGEMENTS 
 
 
I would like to thank David Drysdale for his assistance in developing the GaBi model, and Amy Dawson 
for the ongoing support. Also thanks to Kathy Hamilton, and of course my supervisor Sarah McLaren.  
 
 
 
 
 
 
 
 
 
 
 
v
TABLE OF CONTENTS 
 
ABSTRACT ............................................................................................................................................................ iii 
ACKNOWLEDGEMENTS ...................................................................................................................................... iv 
TABLE OF CONTENTS ........................................................................................................................................... v 
LIST OF FIGURES ............................................................................................................................................... viii 
LIST OF TABLES..................................................................................................................................................... x 
LIST OF ABBREVIATIONS USED .......................................................................................................................... xi 
CHAPTER 1: INTRODUCTION ............................................................................................................................... 1 
1.1 Aim ............................................................................................................................................................. 3 
1.2 Research Questions and Objectives ........................................................................................................ 4 
1.3 Method and Approach .............................................................................................................................. 5 
1.5 The LCA Case Study ................................................................................................................................... 6 
1.6 Disciplinary Context .................................................................................................................................. 7 
CHAPTER 2: LCA AND THE WINE INDUSTRY ...................................................................................................... 8 
2.1 What is Life Cycle Assessment? ............................................................................................................... 8 
2.2 The LCA Method ........................................................................................................................................ 8 
2.2.1 Phase 1 - Goal and Scope Definition ................................................................................................ 9 
2.2.2 Phase 2 - Life Cycle Inventory Analysis........................................................................................... 12 
2.2.3 Phase 3 - Life Cycle Impact Assessment ......................................................................................... 12 
2.2.4 Phase 4 - Interpretation .................................................................................................................. 15 
2.3 Applications of LCA ................................................................................................................................. 16 
2.4 Advantages of LCA .................................................................................................................................. 17 
2.5 Disadvantages of LCA .............................................................................................................................. 18 
2.6 LCA Studies in the Wine Industry ........................................................................................................... 18 
2.6.1 System Boundaries .......................................................................................................................... 19 
2.6.2 Environmental Hotspots.................................................................................................................. 20 
2.6.3 Variability in GWP Results ............................................................................................................... 21 
2.6.4 Normalisation ................................................................................................................................... 22 
CHAPTER 3: ENVIRONMENTAL MANAGEMENT AND THE WINE INDUSTRY ................................................. 24 
 
 
vi 
3.1 Drivers Influencing Environmental Management in the Wine Industry ............................................. 24 
3.1.1 Changing Consumer Preferences.................................................................................................... 25 
3.1.2 Increasing Information Demand from Importers .......................................................................... 26 
3.1.3 Market Competition ........................................................................................................................ 27 
3.1.4 Regulation ........................................................................................................................................ 29 
3.2 Sustainable Winegrowing New Zealand ................................................................................................ 30 
3.3 Greenhouse Gas Accounting Methods .................................................................................................. 31 
3.3.1 Company-level GHG Accounting..................................................................................................... 31 
3.3.2 Product-level GHG Accounting ....................................................................................................... 34 
3.4 Application of GHG Management Approaches in the New Zealand Wine Industry .......................... 35 
3.3.1 GHG Product Accounting Guidelines for the Wine Industry ........................................................ 36 
3.3.2 International Wine Industry GHG Protocol and Accounting Tool ................................................ 36 
3.5 Environmental Impact Quotient Method .............................................................................................. 37 
3.6 Summary .................................................................................................................................................. 37 
CHAPTER 4: ENVIRONMENTAL LABELLING AND THE WINE INDUSTRY ......................................................... 39 
4.1 Company-Level Schemes ........................................................................................................................ 39 
4.1.1 Carbon Neutrality ............................................................................................................................ 40 
4.2 Product Labelling..................................................................................................................................... 41 
4.2.1 ISO Environmental Labelling Standards ......................................................................................... 41 
4.2.2 Carbon Neutrality Labelling ............................................................................................................ 45 
4.3 Issues Associated with Product Carbon Labelling ................................................................................. 46 
4.4 Summary .................................................................................................................................................. 47 
CHAPTER 5: THE LCA CASE STUDIES ................................................................................................................. 48 
5.1 Goal and Scope Definition ...................................................................................................................... 48 
5.1.1 Goal Definition ................................................................................................................................. 48 
5.1.2 Scope Definition ............................................................................................................................... 49 
5.2 Life Cycle Inventory Analysis (LCI) .......................................................................................................... 56 
5.2.1 Grape Growing ................................................................................................................................. 58 
5.2.2 Wine Making .................................................................................................................................... 63 
5.2.3 Packaging .......................................................................................................................................... 68 
5.2.4 Distribution to Consumer ................................................................................................................ 72 
5.3 Life Cycle Impact Assessment (LCIA) ..................................................................................................... 74 
 
 
vii 
5.3.1 General Findings .............................................................................................................................. 74 
5.3.2 Results by Impact Category ............................................................................................................. 76 
5.3.3 Normalisation ................................................................................................................................... 87 
5.4 Sensitivity Analysis .................................................................................................................................. 89 
5.4.1 Grape Growing ................................................................................................................................. 90 
5.4.2 Wine Making .................................................................................................................................... 93 
5.4.3 Packaging .......................................................................................................................................... 94 
5.4.4 Packaging and Distribution to Consumer....................................................................................... 95 
5.4.5 Distribution to Consumer ................................................................................................................ 98 
5.5 Interpretation .......................................................................................................................................... 99 
5.5.1 The Vineyard .................................................................................................................................... 99 
5.5.2 The Winery .....................................................................................................................................101 
5.5.3 Packaging ........................................................................................................................................104 
5.5.4 Summary of Activities ....................................................................................................................105 
CHAPTER 6: DISCUSSION AND CONCLUSION ................................................................................................109 
6.1 Implications for Environmental Management in the Wine Industry ................................................109 
6.1.1 Frost Management ........................................................................................................................110 
6.1.2 Use of Agrichemicals .....................................................................................................................110 
6.1.3 Sheep Grazing ................................................................................................................................110 
6.1.4 Management of Yields...................................................................................................................111 
6.1.5 Energy Efficiency in the Winery ....................................................................................................111 
6.1.6 Lees Waste Management..............................................................................................................111 
6.1.7 Packaging Systems .........................................................................................................................112 
6.1.8 Export Markets...............................................................................................................................114 
6.1.9 SWNZ and Carbon Footprinting ....................................................................................................114 
6.2 Implications for Environmental Labelling in the Wine Industry ........................................................116 
CHAPTER 7: CONCLUSION ...............................................................................................................................118 
AREAS FOR FUTURE RESEARCH ......................................................................................................................119 
APPENDIX I- DESCRIPTION OF THE IMPACT CATEGORIES USED ..................................................................120 
REFERENCES .....................................................................................................................................................122 
 
 
 
viii 
LIST OF FIGURES 
 
 
Figure 1: Value of New Zealand wine exports between 1999 and 2009. Source (NZWINE, 2010a) ............. 2 
Figure 2: Illustration of the four phases of the LCA process as defined by the International Standards 
Organisation. Source (ISO, 2006) ....................................................................................................................... 9 
Figure 3: Four common options for defining system boundaries used in Life Cycle Assessment. Based on 
(PE, 2009) ........................................................................................................................................................... 11 
Figure 4: Taking data from the Life Cycle Inventory, going through steps of classification and 
characterisation, onto the Life Cycle Inventory Analysis. Adapted from (PE, 2009) .................................... 14 
Figure 5: Global Warming Potential for product-at-gate reported in a number of studies ......................... 22 
Figure 6: Logo used by certified wineries and vineyards ................................................................................ 29 
Figure 7: Logo used by certified wineries and vineyards under the Integrated Production of Wine scheme
 ............................................................................................................................................................................ 29 
Figure 8: Logo used by certified wineries and vineyards under the Sustainable Winegrowing programme
 ............................................................................................................................................................................ 30 
Figure 9 Mobius wine bottle featuring the Carbon Reduction Label ............................................................ 42 
Figure 10: An example of a Type II label from the Epsom Group .................................................................. 43 
Figure 11: Illustration of the foreground and background systems in this study ......................................... 52 
Figure 12: Flow chart of the product system as defined in this study ........................................................... 57 
Figure 13: Relative contribution of each life cycle stage to the eleven impact categories .......................... 75 
Figure 14: Contribution of each life cycle stage to Global Warming Potential in both wineries................. 76 
Figure 15: Contribution of each life cycle stage towards Ozone Depletion Potential in both wineries ..... 77 
Figure 16: Contribution of each life cycle stage towards Abiotic Depletion Potential in both wineries .... 78 
Figure 17: Contribution of each life cycle stage towards Primary Energy Consumption in both wineries . 79 
Figure 18: Contribution of each life cycle stage towards Photochemical Ozone Creation Potential in both 
wineries .............................................................................................................................................................. 80 
Figure 19: Contribution of each life cycle stage towards Acidification Potential in both wineries ............. 81 
Figure 20: Contribution of each life cycle stage towards Eutrophication Potential in both wineries ......... 82 
Figure 21: Contribution of each life cycle stage towards Marine Aquatic Ecotoxicity Potential in both 
wineries .............................................................................................................................................................. 83 
Figure 22: Contribution of each life cycle stage towards Fresh Water Aquatic Ecotoxicity Potential in both 
wineries .............................................................................................................................................................. 84 
Figure 23: Contribution of each life cycle stage towards Terrestric Ecotoxicity Potential in both wineries
 ............................................................................................................................................................................ 85 
Figure 24: Contribution of each life cycle stage towards Human Toxicity Potential in both wineries ........ 86 
Figure 25: Normalised data results for both wineries against the CML 2001 OECD reference index value
 ............................................................................................................................................................................ 87 
Figure 26: Sensitivity to a doubling of frost events in various impact category values for the grape 
growing life cycle stage ..................................................................................................................................... 90 
 
 
ix 
Figure 27: Sensitivity of Freshwater Aquatic Ecotoxicity Potential and Terrestric Ecotoxicity Potential in 
the grape growing stage to a 50% increase in field spray emissions............................................................. 91 
Figure 28: Sensitivity of Global Warming Potential in the grape growing stage to the inclusion and 
exclusion of the GHG impacts associated with sheep grazing in the system boundary .............................. 92 
Figure 29: Sensitivity to a 50% reduction in harvest yield in various impact category values for the 
product-at-gate.................................................................................................................................................. 93 
Figure 30: Sensitivity to a 15% increase in electricity consumption in the winery in impact category 
values for the wine making stage ..................................................................................................................... 93 
Figure 31: Sensitivity of Global Warming Potential in the wine making stage to composting lees waste . 94 
Figure 32: Sensitivity of Global Warming Potential over the total life cycle to changes in the greenhouse 
gas emissions factor for glass bottle production ............................................................................................ 95 
Figure 33: Sensitivity of using the PET bottle in the impact category values over the total life cycle ........ 96 
Figure 34: Sensitivity of bulk shipping in various impact category values over the total life cycle ............. 97 
Figure 35: Sensitivity of using lightweight glass bottles in various impact category values over the total 
life cycle .............................................................................................................................................................. 97 
Figure 36: Sensitivity to a 50% reduction in shipping distance in the impact category values for the 
distribution to consumer stage ........................................................................................................................ 98 
Figure 37: Change in total Global Warming Potential that would hypothetically result from the same 
studied wine product being produced in different countries ......................................................................103 
 
 
 
x 
LIST OF TABLES 
 
Table 1: A hypothetical life cycle inventory table for a study with a functional unit of 2,000 oranges ...... 12 
Table 2: Most common greenhouse gases and their respective Global Warming Potentials. .................... 32 
Table 3: Data sources used for the various materials and activities throughout the studied life cycle ..... 53 
Table 4: Default manufacturing energy requirements for agrichemicals. Source (Green, 1987). .............. 59 
Table 5: Inventory table for the grape growing life cycle stage ..................................................................... 62 
Table 6: Inventory table for entire Sauvignon Blanc production during the wine making life cycle stage 67 
Table 7: Inventory table for wine additives used in the wine making life cycle stage ................................. 68 
Table 8: Various greenhouse gas emission factors used for glass bottle production in the literature ....... 69 
Table 9: Inventory table for the packaging life cycle stage ............................................................................ 71 
Table 10: A range of data sources and their respective shipping emissions factors for container ships ... 72 
Table 11: Transportation distances for the distribution to consumer life cycle stage ................................. 73 
Table 12: Main contributing activities to Global Warming Potential in both wineries ................................ 77 
Table 13: Main contributing activities to Ozone Depletion Potential in both wineries ............................... 78 
Table 14: Main contributing activities to Abiotic Depletion Potential in both wineries .............................. 79 
Table 15: Main contributing activities to Primary Energy Consumption in both wineries .......................... 80 
Table 16: Main contributing activities to Photochemical Ozone Creation Potential in both wineries ....... 81 
Table 17: Main contributing activities to Acidification Potential in both wineries ...................................... 82 
Table 18: Main contributing activities to Eutrophication Potential in both wineries .................................. 83 
Table 19: Main contributing activities to Fresh Water Aquatic Ecotoxicity Potential in both wineries ..... 85 
Table 20: Main contributing activities to Terrestric Ecotoxicity Potential in both wineries ........................ 86 
Table 21: Number of frost events in different wine growing regions of New Zealand, with a 
corresponding hypothetical Global Warming Potential for the product-at-gate. ......................................100 
Table 22: Various hypothetical harvest yields with its effect on Global Warming Potential in the 
modelled wine product ...................................................................................................................................101 
Table 23: Percentage reduction in Global Warming Potential for a range of environmental improvement 
options..............................................................................................................................................................106 
Table 24: Percentage reduction in Acidification Potential for a range of environmental improvement 
options..............................................................................................................................................................107 
Table 25: Percentage reduction in Abiotic Depletion Potential for a range of environmental 
improvement options......................................................................................................................................108 
Table 26: Potential greenhouse gas reductions the industry might achieve under a range of packaging 
scenarios ..........................................................................................................................................................113 
Table 27: Description of the various impact categories used in this LCA study. Based on Guinée (2002).
 ..........................................................................................................................................................................120 
 
 
 
xi 
LIST OF ABBREVIATIONS USED 
 
 
ADP Abiotic Depletion Potential  
AP Acidification Potential  
CF Characterisation factor 
EP Eutrophication Potential  
EPD Environmental Product Declaration 
FAETP Freshwater Aquatic Ecotoxicity Potential  
GHG Greenhouse Gas 
GWP Global Warming Potential  
HTP Human Toxicity Potential  
IPCC Intergovernmental Panel on Climate Change 
IWCC International Wine Carbon Calculator  
LCA Life Cycle Assessment 
LCI Life Cycle Inventory 
LCIA Life Cycle Impact Assessment 
MAETP Marine Aquatic Ecotoxicity Potential  
MAF New Zealand Ministry of Agriculture and Forestry 
NI North Island (case study) winery 
ODP Ozone Depletion Potential  
PAG Product-at-gate 
PCF Product Carbon Footprint 
POCP Photochemical Ozone Creation Potential  
SI South Island (case study) winery 
TETP Terrestric Ecotoxicity Potential  
WRAP The British Waste and Resources Action Programme