Sustainable Supply Chains

Our supply chains create value directly to local economies, and provide one of the most important ways in which we support and build capability among the communities in which we work. They are also an important part of our contribution to driving higher standards in sustainability and business ethics, bringing shared value to individuals, businesses and society.

From the farming and production of our ingredients to the manufacture and distribution of marketing materials or merchandising, each stage of every supply chain has impacts on our employees, local communities, the environment, and other stakeholders. We want to integrate social and environmental standards into every link of those chains - and we have a clear commercial interest in ensuring that all our supply chains are secure, stable and sustainable.

Our work with suppliers is based on three core principles:

  • Optimise due diligence
    Our due diligence processes are designed to help our suppliers improve their sustainability performance. While we have our own standards and guidelines, we also work with industry associations like AIM PROGRESS, SEDEX, CDP and SAI Platform.
  • Build capability
    When we can, we help suppliers meet our standards by offering training to build their skills and capabilities.
  • Support and create value with local businesses
    Working with local suppliers is an important way in which we create value and contribute to local economies, especially in emerging markets.

Our strategy for achieving sustainable supply chains is partly measured against our Sustainability and Responsibility targets for 2020, and we will achieve it through work in three core areas:

  • Responsible sourcing
    We invite our suppliers to be our partners in providing responsibly sourced materials and services, which have a positive impact on the communities and environment in which we operate.
  • Reducing environmental impact
    Building on our work to embed sustainability in our partnerships with suppliers, we have set commitments for reducing GHG emissions in our supply chains, for sustainably sourcing all paper and board packaging to ensure zero net deforestation, and for reducing the amount of packaging we use.
  • Agricultural value chain partnerships
    We know that the future prosperity of farmers, suppliers, and our business is closely linked with our ability to create partnerships and generate joint business value.

Sustainable Agriculture Strategy

Robust, resilient, thriving agriculture is fundamental to our business. Only by creating supply chains that are economically, socially and environmentally sustainable can we continue to make the products our consumers know and love.

All the products we make rely on high quality agricultural raw materials and the people who grow them. Just a few key raw materials go into many of our well-known brands – from barley in Johnnie Walker® and wheat in Smirnoff® to molasses in Captain Morgan® and cream in Baileys®. Our vision is to make our agricultural supply chains economically, socially and environmentally sustainable. That means:

  • Securing a supply for our business, while contributing to economic and wider growth
  • Respecting human rights, building capacity and creating shared value with farming communities
  • Using resources efficiently, minimising environmental impact, and safeguarding future crops and ecosystems.

This document sets out our strategy to make that vision a reality and highlights some of the ways we are already putting our strategy into action around the world.

Diageo Sustainable Agriculture Strategy

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