Our Climate Transition Plan

At Diageo, climate risk considerations are embedded in how we plan, operate and grow our business. From how we manufacture and distribute our products to how we make long-term investment decisions; it’s fundamental to the way we do business.

Taking action to reduce emissions and limit our impact on climate change remains critical. Alongside this, we’re also focused on minimising the negative impacts of climate change that are already being felt in our communities. As climate impacts intensify globally, this work becomes increasingly important – particularly in supporting communities, protecting critical water resources and strengthening our supply-chain resilience.

Our approach to climate action brings together both mitigation and adaptation, underpinned by a clear understanding of the assumptions and dependencies that will shape delivery over time.

This is reflected in the next step in our climate strategy: our Climate Transition Plan (CTP).

The CTP sets out a clear pathway to reduce emissions across our operations and value chain, manage climate-related risks, and prepare our business for a low-carbon, climate-resilient future. It is a roadmap that will evolve as conditions change.

This approach reflects our understanding that our licence to operate depends on addressing climate change and protecting the natural environment, shaping how we work across our business, partners and communities.

The strategy is guided by three core principles:

• Pursuing both climate mitigation and adaptation
• Focusing investment and effort where we can have the greatest impact
• Amplifying progress through collaboration across our value chain and beyond.

Across our operations, we aim to reduce emissions by increasing our use of renewable energy, improving the efficiency of our processes and energy use, and innovating how our products are made, packaged, and transported. Beyond our direct operations, we will continue to work closely with our suppliers, farmers, and customers to address challenges across the value chain, recognising that collective action is essential to achieve impact at scale.

Our strategy extends beyond carbon emissions alone, taking a holistic approach that integrates climate action with water stewardship, agriculture, nature and circularity. This is particularly evident in our adaptation actions, where water - central to our products and increasingly our most strategic climate risk- is requiring urgent and sustained focus.

Our climate transition plan is grounded in transparency, clearly setting out our key assumptions and dependencies, many of which are beyond our direct control.

Together, these elements are designed to build a more resilient supply chain, helping us to adapt to a world in transition, support collective climate action and ensure our business can continue to operate effectively amid growing climate risks.

You can read our Climate Transition Plan in full here.