# Accounting for Carbon Footprint Flows in Wine Production Process. Case Study in Spanish Winery
## 3 Case Study  
### Methods  
As part of a three-year project, the case study presented refers to a large winery company in Spain with more than 70 years of history, working as a cooperative with more than 700 members who own close to 4000 hectares of vineyard. The company, which absorbs around 30 million kilos of wine grape per year, produces a wide variety of wine products in various formats and volumes, after different industrial processes. The company value chain has three main phases, starting with the main input farming (grape), following with the production process and storage, and ending with the distribution and selling of final products. In the first phase, depending on each year's crop, from two thirds to three quarters of the grape is produced by farmers who are members of the cooperative and, therefore, shareholders of the company. The remaining part of grape needed, together with other supplies used in the farming cycle and in the production process, are the areas where the company has less control and, therefore, more difficulties in imposing new monitoring and accounting systems for CF (Figure 1). One of the detected difficulties during the design of the methodology here applied was to fit the CF accounting into the traditional accounting framework of the winery. In line with the results obtained by [PERSON] and [PERSON] [52], the Spanish wine industry is also influenced by long-lived habits that means that companies develop their own accounting practices such as a unique cost formula. The Data Envelopment Analysis used by [PERSON] et al. [53] to measure and decompose inefficiency of the Spanish quality wine sector, was also considered when designing the methodology. In the proposed CF integrated method, all activities have been considered in a simplified and internally applied procedure, including all the components of wine packaging (bottle, stopper, capsule, label, boxes, pallets, etc.) because it is considered to be of high importance for the analysis [54], given that most of these impacts are related to fossil fuel emissions for the production and transport of materials [34]. The project was divided in six phases (Table 1), of which the final outcome would be the introduction of a CF monitoring, accounting and reporting system based on the MFCA approach that would permit the knowledge of the CF 'weight' of any product or semi-finished product at any given moment, and to label the final products with a CF aggregated label including the supply chain impact. \begin{table}
\begin{tabular}{c p{227.6 pt}} \hline \hline Phase 1 & Characterize the company value chain from a Life Cycle Analysis approach, auditing energy consumption and equivalent CO2 emissions in all processes linked to the product, in production process and supply chain. \\ \hline Phase 2 & Linkage and accrual of aggregate CO2 emissions equivalent to the final production, obtaining the volume of emissions per unit applicable to each final product unit (bottle/wine box). \\ \hline Phase 3 & Development of an interactive online application integrating all factors of the supply and production chain, allowing for real-time accounting and analysis of CO2 emissions. \\ \hline Phase 4 & System implementation, (1) incorporating the company technical staff, (2) cooperative farmers and (3) representatives of the rest of the supply chain. Training and practice on the use and management of the application. \\ \hline Phase 5 & Complete integration of the application in the integrated management and accounting system of the company, permitting the automatically linkage of CO2 emissions with other systems such as financial accounting, product card, vendor card, etc. \\ \hline Phase 6 & Reporting of results in the communication and corporate information system, as well as the wine labelling process. Public communication of aggregated emissions and volume of emissions per bottle (or unit sold) on product label. \\ \hline \hline \end{tabular}
\end{table} 
Table 1: Phases of the project. Figure 1: Value chain of the company.