A strong agricultural sector, availability of regional jobs and financial capital, and improved regional liveability are not only linked but interdependent. The strength of the ag sector rests on consumer and market support, enabled by the nebulous ‘social licence to operate’ (SLO).
Social licence is notoriously difficult to quantify or measure, and is often shunted into the ‘too hard’ basket; yet it’s not something that can be ignored. In an information-heavy society, the ag sector is subject to mixed messages based on a melange of facts and feelings which could have serious consequences for SLO.
Many of today’s agricultural policy issues are inherently emotive. For example, the environmental impacts of land clearing or chemical use are issues that elicit impassioned social responses based on core beliefs, subsequently attracting regulation which could be adverse for some sectors.
‘Sustainability’ is a prime case study for SLO. Consumers want sustainable produce, growers want sustainable enterprises and natural resources, governments want sustainable economies; yet each stakeholder may hold different views on what sustainability means. Misunderstandings of this kind can seriously undermine community trust.
These themes are not new, yet action which could create a stronger, sustainable ag sector and stronger, sustainable regions has been lacking – largely due to short-term thinking. To assure the industry’s social licence, decision-makers must envision goals for agriculture and regional communities many decades ahead, consider alternative scenarios resulting from action or inaction, and commit to identifying the common goals and frames of reference which provide the foundations of social licence.

In short, yes…with caveats.
Wine has formed part of the social construct for many thousands of years. Its symbolic use across religion; its connection to the Greek symposium and philosophical debates; its reference in literature; to its consideration as an art form, all point to its application within society. Hippocrates (aka the father of western medicine and of ‘Hippocratic Oath’ fame) highlighted wine as a custom within daily regimen around 400 BC. Even Hippocrates, though, noted the importance of moderation.
Hence, the caveats. While Hippocrates advice around diluting wine with water to aid moderation may cause vignerons to shudder, the intent was wise. It would be naïve to think alcohol comes without risk. It is, however, for the large part, controllable risk – premised on ensuring that educated consumers have the option of choice. Of course, for some, alcohol is simply not advised: those who are underage, pregnant or having problems managing their consumption should be supported to abstain. The majority of the population do have the ability to make informed choice. We’ve seen from DrinkWise and government statistics that the overwhelming majority of Australians who choose to drink do consciously moderate and consume within guidelines – even during the pandemic buying spike! Consumers choosing quality over quantity and the emergence of the zero-alcohol category further reinforce healthier choices.
It is for these reasons that wine can be part of a civilised society – as long as consumers are educated and supported to make safe and healthy decisions around alcohol (as opposed to diluting wine with water).

Global GHG emissions continue to increase in spite of commitments to reduce them. They are currently at record levels, fuelling record atmospheric concentrations (now more than 50% higher than pre-industrial levels). Unsurprisingly, this continues to push global temperatures higher, with at least 7 out of the last 8 years being the hottest years on record. This is generating unprecedented heatwave and related conditions as well as associated changes in rainfall and rainfall intensity, vapour pressure deficit and to various extreme climate-related events. The recent IPCC Working Group 2 report showed that these changes are already impacting on viticulture and wine production, profitability, risk and sustainability. Importantly, these changes interact with improvements in management and technologies, demand-side factors, institutional arrangements, other biotic and physical stressors etc. When these factors are accounted for, climate changes are largely negative for existing wine-producing areas, both in Australia and globally, although there are instances where some positive impacts have arisen. More, and bigger, changes are projected, leading to concerns about future sustainability. It is clear that adaptation to climate change is happening but it is patchy and may be increasingly insufficient. There are many adaptation options available to address some of these issues ranging from the tactical and technical to the strategic and transformational. But we are arguably not investing adequately in the underlying R&D to generate new and better options nor in the implementation and M&E of those we already have. The recent IPCC report and previous work shows that as climate change gets worse, generally the adaptation option space shrinks and the effectiveness of adaptation options tends to decline. Does this apply to viticulture and wine-making ? Additionally, there is growing pressure to reduce the GHG and broader environmental footprint. There are interesting times ahead for viticulture and wine-growing in a changing climate.

Climate and sustainability issues are influencing decision-making across many facets of the wine industry. The same is true in financial services where capital has become ‘carbon-conscious’ - changing community expectations mean more scrutiny over banks approach to climate change; regulators are evaluating bank’s management of climate change financial risks while investors are setting more stringent emissions thresholds for their investments. National Australia Bank is Australia’s leading business bank. We support our agribusiness customers through a network of 650 regional and specialist bankers in over 120 locations. Sustainability is a core part of NAB’s strategy because the success of our economy depends on our climate. Sustainable business is good business and underpins our licence to operate. NAB has committed to aligning our lending portfolio to net zero emissions by 2050. Serving our customers well is why we are here. NAB is responding to customer demand by creating products that help to navigate the challenges of a decarbonising world. NAB is a reliable partner to support the Australian wine industry and maintains its position as a premium supplier to both domestic and international markets.