2015 HIGHWAY TO SUSTAINABILITY: ACTIONS AND FUTURE GOALS.

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1 2015 HIGHWAY TO SUSTAINABILITY: ACTIONS AND FUTURE GOALS.

2 MISSION & STATEMENT From the first beginning, we opted for an artisanal production skipping unnecessary processes and making the best of natural resources. Just, remembering how wine was produced 40 years ago, we easily realised that the life cycle of wine was closed naturally by itself. Water came back to the Earth turning into nutrients; nor electric power was needed neither electric pumps or complicate acclimatization systems. That s the reason why Bodega Pagos del Moncayo opted out from a heavily industrialized production model and opted for a more traditional way of producing wine, taking a step forward towards the controlled slowdown of its production system. By implementing a more traditional and artisanal wine-production model, we got to reduce the environmental impact of our PdM Moncayo wines. Some aspects of our elaboration process were considered as a core model for those wineries producing less than bottles a year, according to the European Project Eco-Prowine: The winery is not connected to the main electric grid. It uses photovoltaic panels and a diesel- powered generator only used punctually. No artificial acclimatization systems are needed: air-flowing regulates the winery s temperature thanks to its strategic location close to the Moncayo Mountains. Wine elaboration in open vats allows: Movements by hand and by feet (no electric pumps needed) Direct wine blending in the vats skipping unnecessary processes of pumping. Wine storage in PE tanks that, as oak barrels do, allow wine micro-oxygenating enhancing young reds quality while saving resources by avoiding the massive use of oak barrels with a limited life of 5 years.

3 GENERAL INFORMATION OF THE WINERY Annual production: approx bottles/year Products: only red wines. PdM Moncayo Garnacha Syrah: 61,733 bottles PdM Moncayo Garnacha: 11,600 bottles PdM Moncayo Syrah: 6,900 bottles PdM Moncayo Prados: 2,900 bottles Philosophy: traditional elaboration in open vats. Artisanal hand-made wines.. Workers: two full-time employees coming from local communities. CULTIVATION & MAINTENANCE OF THE VINEYARDS Vineyard ownership: 7,2 ha (17 ac) of family-owned vineyards (the winery doesn t buy wine from other wineries) Vineyard-to-winery distance: approx. 23 km Grape varieties: Garnacha (50% of the vineyard) and Syrah (50% of the vineyard) Low-yields: always below max. allowed of 8700 kg/ha Vineyard maintenance: Unnecessary truck works are avoided Manual harvesting Biological control of the vineyards: using pheromones for a more targeted and effective pest control 500 diffusers per ha (a stick every 2 or 3 plants) Cost: 110 Euros/ha POTENTIAL SUSTAINABILITY IMPROVEMENTS: Progressive substitution of those chemical pest-control systems by other eco-friendly biologic solutions. Spread the implementation of these biological treatments to the rest of the local vine-growers to increase their effectiveness.

4 HAND-MADE CULTIVATION & MAINTENANCE OF THE VINEYARD Personal care and implication of local communities.

5 TRANSFORMATION PROCESS IN THE WINERY Winery installations: ELECTRICITY: NO connection to the electricity gird - use of photovoltaic panels and a diesel-powered electric generator: Photovoltaic Panels: office works and security system Diesel-powered electric generator: cooling equipment (used only one week a year) WATER: minimized use of water Hot water: 200l. electric water-heater (hot water only used for cleaning the vats. A single mix with 200 litres of water is recycled and used to clean all the vats.) ACCLIMATIZATION: NO artificial systems; natural air-flowing regulates the winery s temperature. PROFESSIONAL EQUIPEMENT: Cooling equipment: 1 Pumping equipment: 2 Open vats (PE - Polythene): 6 x 5,000l and 4 x 3,000l Stainless steel tanks: 3 x 10,000l and 2 x 5,000l (all with adjustable lids) Polythene tanks: 10 x 2,000l and 8 x 1,000l (allowing micro-oxygenation, substitute the massive use of oak barrels) French and American barrels: 66 in total Grape transportation to the winery: individual 18 kg-boxes are transported in a van carrying 1500 kg of grapes in every way to the winery. Grape destemmed: no need to use pumping system (grape introduced in the machine by hand). Maceration and alcoholic fermentation: open PE vats. 1) Maceration: 3-5 days at 10ºC 2) Alcoholic fermentation: 10 days between 25-28ºC Temperature control: temperature sensor Refrigeration: water-cooling plates connected to the cooling system (water flows in a watercoolant closed refrigeration circuit) Racking (in open vats): Movements made by hand and by feet (no pumps used). Pressing: NO pressing - only two little manual presses used puctually for the elaboration of PdM Prados. Filtering: NO filtering - decanting by gravity in stainless steel conic tanks. Wine stabilization: NO cool stabilization - natural regulation thanks to the strategic location of the winery which allows the ambient temperature to remain stable at 5ºC. Ageing: in the case of PdM Moncayo Garnacha Syrah which accounts the mayority of the winery s production, barrels are substituted by Polythene tanks whose product life is longer and also allow wine s micro-oxygenation. French-oak barrel (approx. 200l capacity) = 650 Euros / product s life span: 5-6 years American-oak barrel (approx. 200l capacity) = 400 Euros / product s life span: 5-6 years PE tanks (2,000l capacity) = 3,000 Euros / product s life span: approx. 20 years

6 LOOKING CLOSER TO THE TRANSFORMATION PROCESS IN THE WINERY Getting back to the roots of artisanal wine elaboration.

7 Bottling: bottling machine rental. The Bottling truck is connected to the winery s gird (electricity and water wise). Cleaning and maintenance: the same special cleaning mix prepared with 200l of water is reused for cleaning all winery s vats. POTENTIAL SUSTAINABILITY IMPROVEMENTS: Photovoltaic installation improvement: combine the use of solar cells with other clean energy systems such as wind to minimize the use of the diesel-powered electric generator. TRANSPORTATION (PACKAGING) Bottles: 475g-bottle: 75% of the bottles commercialized (61,733 bottles of PdM Moncayo Garnacha Syrah) 650g-bottle: 25% of the bottles commercialized (21,400 bottles of PdM Moncayo Garnacha, PdM Moncayo Syrah and PdM Moncayo Prados) Closing system: Prados bottles). 100% cork taps + polylaminate capsule (96,5%) + Sn capsule (only 3,5% - 2,9K of Labels: non toxic water-based inks. Craft paper and coating made of pulp from Bio-sustainable forests. Boxes: same box for all wine types. WASTE MANAGEMENT Organic: Grapes: grapes are selected directly in the vineyards. Biodegradation in the vineyard. Optimization of weight during grape transportation. Natural yasts: organic waste is pressed and sent to the closets destilery. Cardboard: recycling - waste disposal in specialized container. Glass: recycling - waste disposal in specialized container. Plastic: recycling - waste disposal in specialized container.

8 ON-PACKAGING SUSTAINABLE ACTIONS MEDIDAS DE SOSTENIBILIDAD ADOPTADAS EN EL ENVASE Y EL EMBALAJE BODEGA PAGOS DEL MONCAYO CORK / / CORCHO 100% Biodegradable 100% Biodegradable CAPSULE // CÁPSULA BOTTLE // BOTELLA Selecting bottles with as less weight as possible to minimize the product s carbon foot print Seleccionamos las botellas con el menor peso posible para minimizar la huella de carbono total del producto ONLY 25% OF THE BOTTLES USED ARE 630g 75% OF THE BOTTLES USED ARE 475g LIGHT-WEIGHT 1 bottle = real bottles of PdM Moncayo Garnacha Syrah 1 bottle = real bottles of PdM Moncayo Garnacha, PdM Moncayo Syrah or PdM Moncayo Prados 96.5% 3.5% Use of eco-light bottles for our PdM Moncayo Garnacha Syrah, which accounts the 75% of the bottles commercialized ( bottles). We only use heavier bottles for those limited-edition wines: PdM Moncayo Garnacha ( bottles), PdM Moncayo Syrah (6.900 bottles) and PdM Moncayo Prados (2.900 bottles). Uso de botellas eco-ligeras para nuestro PdM Moncayo Garnacha Syrah, cuya producción supone el 75% de las botellas comercializadas ( botellas). Sólo se usan botellas más pesadas en el caso de los vinos de edición limitada: PdM Moncayo Garnacha ( botellas), PdM Moncayo Syrah (6.900 botellas) and PdM Moncayo Prados (2.900 botellas). % de Percentage of wine with polylamine capsule / Sn capsule Porcentaje de vinos con cápsula de complejo / cápsula Estaño 2020 GOAL: use the same bottle for all of our wines and opt for a lighter one. OBJETIVO 2020: optar por una única botella más ligera para todos los vinos. POLYLAMINATE CAPSULE CÁPSULA DE COMPLEJO The materials consist of AL+PVC+AL Withdrawal of capsules in special containers so aluminium can be reused Material compuesto de Al+PVC+Al Retirada de cápsulas en contenedores especiales para reutilizar el Aluminio TIN CAPSULE CÁPSULA DE ESTAÑO 100% Recyclables Water based inks are used 10,5% of the tin (Sn) is 2nd-fusion recycled 100% Reciclables Utilización de tintas al agua El 10,5% es estaño (Sn) reciclado de 2ª fusión WE SELECT OUR DISTRIBUTORS TAKING INTO ACCOUNT THEIR ENVIRONMENTAL POLICY SELECCIONAMOS NUESTROS DISTRIBUIDORES SEGÚN SUS POLÍTICAS MEDIOAMBIENTALES LABEL // ETIQUETA Raw materials: virgin cellulose pulp. Inks free of heavy metals or levels well below the maximum allowed level. Adhesive SH6020. Certified for direct contact with low-fat foods. Materia prima: pasta virgen de celulosa. Tintas libres de metales pesados o con niveles muy inferiores a los máximos permitidos. Adhesivo SH6020. Certificado para contacto directo con alimentos no grasos. BOX // CAJA ONE SINGLE BOX MODEL for all the wines Raw materials: Craft paper and coating made of pulp coming from BIO-SUSTAINABLE FORESTS Water-based inks - those which who contain heavy metals are acceptable according to the rules 11/97 ÚNICO MODELO DE CAJA para todos los vinos Materia prima: papel craft y estucado a base de pasta de celulosa virgen proveniente de BOSQUES BIOSOSTENIBLES Tintas con base acuosa. Las que contienen metales pesados siguen la normativa 11/97 Bodega Pagos del Moncayo Ctra. Z-372 Km 1.6 Vera de Moncayo (Zaragoza) SPAIN Tel: bodega@pagosdelmoncayo.com

9 PAGOS DEL MONCAYO: THE ECO-PROWINE S CORE MODEL Eco-Prowine is a project co-funded by the European Union within the CIP Eco-Innovation initiative of the Competitiveness and Innovation Framework Programme (CIP). ECO-PROWINE s main objective is to offer a unique framework (methods and tools) that leads to reduction of the environmental impact of the EU wine-making sector through introducing the LCA-LCC tool in wineries across the EU. This tool allows evaluating the consumption rates (energy, water, pesticides, etc.) and all those emission issues and their costs in order to make the Product Life Cycle more efficient environmentally. In 2014, Bodega Pagos del Moncayo takes a step forward and becomes part of the European Wine Sustainability Project: Eco-Prowine as pilot winery. As part of the project, Pagos del Moncayo implemented the Life Cycle and Cost Assessment methodology, taking action across the entire life cycle of its wines. Our winery got to establish itself as a referent for the EU wine industry productivity-wise. It got the deserved recognition of being chosen as the only Spanish winery in being visited by Aurelio Politano, the European Commissar of the project. Cristell Nonay (Pagos del Moncayo CSR manager) chosen as official representative of all Eco-Prowine s pilot wineries, From left to right: Lola Mainar and David Zambrana (Eco-Prowine project managers), Aurelio Politano talks about the sustainable production model of Bodega (EU Project Officer), Tasos Tsitsanis (Eco-Prowine partner) and Gonzalo Marchant (Pagos del Moncayo Pagos del Moncayo in the 2015 ECOPROWINE Seminar on oenologist) in the official visit of the EU Committee to the winery. Sustainability in Wine Production. OUR LIFE CYCLE ASSESMENT RESULTS

10 ECO-PROWINE QUICK RESULTS After analyzing activity of 105 pilot wineries across the main European wine producers - Spain, Portugal, BASEtheDE DATOS EUROPEA France, Italy, Germany, Austria, Greece and Bulgaria, Eco-Prowine team found out that the main contributors to CO2 emssions are: #1 glass bottles, #2 electricity, #3 fuel, #4 organic fertilizers, #5 inorganic fertilizers Bodega Pagos del Moncayo got to stay behind the average levels of CO2 emssions in those #top5 key assets contributing to the major environmental impact: Worse Median Pagos del Moncayo Best

11 ADDITIONAL INDICATORS OUR RESULTS VS. ECO-PROWINE BENCHMARK Worse Median Pagos del Moncayo Best

12 Bodega Pagos del Moncayo Ctra. Z-372 Km 1.6 Vera de Moncayo (Zaragoza) SPAIN

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