Green Intellectual Capital in the Spanish Wine Industry

Introduction

Wineries are facing increasing pressures to improve their environmental sustainability (Santini et al., 2013; Gilinsky et al., 2016), as the environment, the community and the local economy can be negatively affected by their activity. The wine industry faces several exogenous factors that threaten its survival, such as: rising energy prices, water scarcity, increasing environmental awareness of stakeholders or climate change (Guthey & Whiteman, 2009; Hertsgaard, 2010). These factors, together with the proactive attitude of winemakers, can drive the adoption of sustainable practices that subsequently culminate in product innovation, pollution prevention and the efficient management of natural resources (Carrillo-Hemosilla et al., 2010), in order to obtain a sustainable competitive advantage over time (Porter & Van Der Linde, 1995).

In this context, sustainability in the wine industry goes from being an option to a necessity. The concept of sustainability was first made known worldwide through the report Our Common Future by the World Commission on Environment and Development (WCED, 1987), an entity belonging to the United Nations commonly known as the Brundtland Commission. This commission related sustainability to environmental integrity and social equity, coining the term sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987, p. 43). Subsequently, the 1992 Earth Summit in Rio de Janeiro would lead to a broad acceptance of this definition by business leaders, politicians, and NGOs (Dyllick & Hockerts, 2002). For organizations, this new approach implied the challenge of simultaneously improving social and human well-being while reducing their environmental impact (Sharma & Ruud, 2003).

Sustainable organizations try to find a sweet spot between their harmful environmental and social impacts and the economic profitability generated by their activity (Nguyen & Slater, 2010). They are aware of the social and environmental impacts of their activity, acting responsibly to minimize any negative impacts and stay in business (Phyper & MacLean, 2009). This may involve several strategies, such as reducing pollutants and waste, making processes and products more efficient, or even working to ensure that the company does not deplete its own supply chain. In the wine industry, the notion of sustainability is cemented in various official documents from the International Organization of Vine and Wine (OIV), outlining its definition (OIV, 2004), guidelines (OIV, 2008) and basic principles (OIV, 2016). In addition, wine regions have created their own frameworks to adapt sustainability in their territories. In this sense, sustainable viticulture frameworks are seen as a green response towards customer and market demands, as well as a strategic way to position the territory.