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Introduction
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Reporting boundaries 
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External assurance

Reporting boundaries and methodologies
The non-financial reporting boundaries and 
methodologies outlined here relate to the social 
and environmental performance disclosures set 
out in the Annual Report and the ESG Reporting 
Index. We describe below the general reporting 
methodologies and boundaries related to both 
non-environmental and environmental reporting. 
Where there are exceptions to these general 
reporting methodologies and boundaries, these 
have been included with the specific metric in 
the tables that follow.
General reporting methodology and 
boundaries, covering both non-environmental 
and environmental metric reporting
I. Reporting period
Our reporting covers the financial year ended 30 June 2023 unless 
otherwise stated.
II. Scope
Unless otherwise stated1, the boundaries for all non-financial 
information disclosed in the Annual Report and the ESG Reporting 
Index include the performance of the global operations of Diageo plc 
and its subsidiaries, together with the attributable share of the results 
of significant joint ventures and joint operations. 
The reporting boundaries are based on the principles outlined by 
the non-financial reporting strategy of our management, the nature 
of each indicator and, in the case of our greenhouse gas (GHG) 
emissions metrics, the Greenhouse Gas Protocol. 
Environmental data and health and safety data is collected and 
reported for all operational sites and office sites with more than 50 
employees where we have operational control. The environmental 
impacts associated with leased facilities that do not meet the criteria 
already mentioned are excluded and considered immaterial to the 
company’s overall impacts. This scope is reviewed every year to 
assess the data and extent of impacts. 
GHG emissions associated with leased vehicles under operational 
control are being reviewed and reassessed to determine material 
significance to overall emissions and extent of overlap with Scope 3 
indirect emissions. This review will be concluded in fiscal 24; our 
current estimate indicates leased vehicles may contribute 4%-5% 
of Scope 1 emissions or <0.5% of Scope 3 emissions.
Material changes to environmental reporting methodologies are 
ratified at quarterly 2030 grain-to-glass Strategic Business Review 
meetings, chaired by the President, Global Supply Chain & 
Procurement and Chief Sustainability Officer.
Exceptions to and limitations of each indicator are explained in the 
following pages of this document. 
III. Baseline and targets
The financial year ended 30 June 2020 is our baseline year. 
It applies to the majority of our ‘Society 2030: Spirit of Progress‘ goals. 
Exceptions are described in the following pages. The baseline data 
is used as the basis for calculating progress against our goals.
We aim to achieve each goal by fiscal 30, unless otherwise stated 
in the following pages of this document. 
IV. Acquisitions and disposals
New acquisitions are included in the consolidated reporting for 
non-financial disclosure from the date when control passes or 
as soon as practically feasible, and no later than one year after 
assuming operational control.2 This duration varies as each 
new acquisition has unique systems and processes that must be 
integrated. In case of disposals, data associated with the divestment 
is removed from the baseline, intervening years and current year 
unless otherwise stated in the following pages.
V. Restatements
We may have to restate historical data due to structural changes 
in our operations, including from acquisitions and divestments; 
improvements in data accuracy and calculation methodologies; 
material changes to relevant policies; and material changes in our 
non-financial reporting.
To determine whether we need to restate historical data, we examine 
whether the qualitative or quantitative impacts of the changes to our 
non-financial reporting are material enough to compromise the 
accuracy, consistency and relevance of the reported information. 
In case a restatement for environmental data is necessary, we restate 
the data for the baseline year and intervening years.
In case of our environmental data, we may need to adjust data to 
reflect updates to GHG emission factors, in line with the GHG Protocol 
recommendations; and any changes in reporting policy that result in 
a material change to the baseline of more than 1%. We also restate 
data where we can show that structural changes regarding outsourcing 
and insourcing have an impact of more than 1%. In certain cases, 
where historical data is unavailable, the environmental impacts for the 
baseline year and intervening years are extrapolated from current 
environmental impact data, based on production patterns.
1.	Non-financial information, including baseline information, excludes the performance attributable to one of our business units in Greater China due to local regulatory restrictions. 
We believe the exclusion of this data does not materially impact our non-financial performance. We restate baseline and intervening years’ non-financial information to reflect 
divestments, acquisitions, the exclusion of a business unit in China due to local regulatory restrictions, and any other changes that would otherwise compromise the accuracy, 
consistency and relevance of the reported information.
2.	We define operational control using the definition of accounting standards for most of our ESG metrics. For greenhouse gas emissions, our definition is aligned with the Greenhouse 
Gas Protocol.
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Reporting boundaries and methodologies
In fiscal 23, the baseline year GHG emissions impacts were 
restated to reflect changes to CO2e emission factors and updated 
calorific values.
VI. Reliability and accuracy of data 
We have processes that govern the collection, review and validation 
of non-financial data included in this report, at market, regional and 
global levels. We have clear reporting lines and documentation of 
our processes; this report provides more detail about our reporting 
methodologies and calculation processes. Reporting methodologies 
are reviewed and updated each year by leadership teams.
While we make every effort to capture all information as accurately 
as possible, it is neither feasible nor practical to measure all data 
with absolute certainty. Where we have made estimates or exercised 
judgement, this is highlighted within the reporting methodologies. 
The metrics with the  symbol are within PwC’s independent limited 
assurance scope reported to the Directors – see pages 116-119 of this 
document. The metrics with the symbol Δ are within PwC’s independent 
limited assurance scope reported to the Directors – see pages 263-266 
of the Annual Report. 
Some of our listed subsidiaries also publish sustainability information 
either as standalone reports or as part of their annual report. 
Examples of sustainable information reporting are linked below:
•	United Spirits Limited
•	Sichuan Swellfun Co, Ltd
•	East Africa Breweries PLC
•	Guinness Nigeria plc
VII. Reporting systems
We use four main systems to collect, validate and analyse 
reported data.
•	Human Resources data is reported at site level using Workday, 
our global information management systems. HR data is collected 
on a monthly basis for all Workday markets1. Non-Workday 
markets2 data is manually captured offline via HR Directors and 
the points of contact only for annual reports. Both Workday and 
non-Workday markets data are then consolidated. 
•	Health and Safety information for performance measures is 
collected locally, on a monthly basis, using site held incident reports. 
This is collated and analysed using a web-based information 
management system and reported externally on an annual basis.
•	Environmental data is collected on key measures of environmental 
performance every year. This is collated and analysed using 
a web-based environmental management system. 
•	Market-level ‘Society 2030: Spirit of Progress‘ data: Where ‘Society 
2030: Spirit of Progress‘ programmes are managed at a local level, 
data is collated every quarter. The data is compiled at market, 
regional and global levels, alongside our other ‘Society 2030: Spirit 
of Progress‘ goals, and is reviewed by general managers, functional 
leadership teams, the 2030 grain-to-glass Strategic Business Review 
(SBR) and the Global Executive Committee during quarterly meetings. 
This regular assessment of performance enables us to manage 
programme risks and opportunities and helps us ensure that we 
have the right level of resources to deliver on our commitments.
Scope and methodology of physical and 
transition climate risk scenario analysis reported 
on pages 72-78 of our Annual Report. 
Scenario analysis of physical risks
Important note on scenario analysis:
Climate risk scenario analysis has limitations: it is not a predictor of the 
future and it is limited by the assumptions used, which themselves are 
subject to uncertainty. No single scenario is likely to materialise in the 
coming decades, and we are all likely to be exposed to both physical 
and transition risks as the world continues to warm as a consequence 
of emissions already in the atmosphere. The pathway to reducing 
emissions is also highly variable, as governments and industry pursue 
a variety of means, such as introducing regulation and developing 
new technologies. Nevertheless, scenario analysis is a powerful tool 
to understand how our business could be impacted under certain 
plausible but severe future conditions, and it allows us to understand 
where risks and opportunities are most likely to materialise, 
to understand trends and to integrate these into our strategy.
Following the recommendations of the Task Force on Climate-related 
Financial Disclosures (TCFD), we conducted scenario analysis to 
determine the likely financial impact of the most important physical 
risks on our assets and operations. The physical risks we identified of 
most importance were:
1.	 Water supply: Inability to produce brands due to constrained water 
supply as a result of drought caused by chronic climate change 
2.	Agricultural material supply: Increased cost of raw materials due 
to scarcity caused by changes in growing conditions caused by 
chronic climate change
3.	Site integrity: Inability to produce products, or damage to stored 
products due to acute weather events (floods or storms)
4.	Disruption to agricultural material supply: Inability to receive 
agricultural materials due to acute weather events (floods or storms).
Using the best available climate data and natural catastrophe-
modelling techniques, our climate resilience partners calculated 
projected Estimated Annual Losses (EALs) and Value at Risk (VaR) 
for the present day and two future time periods (the 2030s and 
2050s) under two climate scenarios. For most climate variables, these 
climate scenarios include a ‘moderate’ emissions reduction pathway 
(RCP4.5 or SSP245) and a ‘worst-case’ pathway (RCP 8.5 or SSP 585). 
The results were expressed as:
Present day and projected EALs driven by:
•	The impact of drought, river floods and tropical windstorms on 
owned and third-party-operated production assets
•	The impact of floods and tropical windstorms on supplier assets 
(glass and cans);
and present day and projected VaR associated with:
•	The exposure of production assets to water stress
•	The exposure of production and supplier assets to tropical windstorms.
1.	Markets using our Workday online Human Resource system
2.	Non-Workday markets refer to markets where the Workday online Human Resource 
System is not used.
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Reporting boundaries and methodologies
A summary of the scope of our physical and transition risk assessments and scenario analysis 
Timeframe
Short term (0-5yrs)
Medium term (2030)
Long term (2050)
Geography
All Diageo and key third-party operations in North America, Scotland (fiscal 21); India, Africa, Mexico and Turkey (fiscal 22); 
and Asia Pacific, Europe and Latin America and Caribbean (fiscal 23).
Risk types
Physical risks
Water (availability, quality, temperature), temperature, flooding, 
landslide, wildfires, wind, humidity
Transition risks and opportunities
Temperature scenarios
+4 to +5ºC (extreme) 
RCP 8.5’
+2 to +3ºC (moderate) 
RCP 4.5’
1.5ºC to 2ºC (Paris agreement) 
RCP 2.6’
Scope
Raw materials
1,200+ suppliers sites.
Key raw materials* 
(wheat, barley, maize, 
cane and beet sugar, 
vanilla, aniseed, 
grapes, broken rice, 
sorghum, agave, 
dairy, hops)
*+4 to +5ºC scenario only
Processing
Approximately 250 
Diageo and third-party 
operations sites
Detailed assessments 
of 39 sites
Distribution
Key road, rail routes
Key sea ports (69)
Risks reviewed
Policy and legal risks
Technology risks
Market risks
Reputation risks
Opportunities
Resource efficiency
Energy source 
Products and services
Markets
Scenario analysis
Energy
Transport
Packaging
Raw materials
Scenario analysis
Pack weight reduction
Circular offerings
Scenario analysis of transition risks
Over fiscal years 21-23, we have conducted scenario analysis of the impact on our financial performance of transition risks stemming from 
a Paris-aligned scenario. Our modelling envisages a successful transition to a low-carbon economy in time to keep the temperature rise 
to 1-2⁰C by 2100 and assumes a variety of decarbonisation challenges and opportunities relating to ingredients, energy, packaging and 
transport costs, and changes in demand for our products (to 2030 and 2050). Over consecutive years, we have refined the model and 
incorporated data relating to our entire business, including production volume, sales, raw materials and packaging costs, and projected 
growth rates by category and market to inform future scenarios.
In modelling the financial impact of a successful transition to a low-carbon economy, we considered two scenarios: 
1.	 A baseline scenario which incorporates stated policies and national targets that are already in place and have detailed measures for 
their realisation, and
2.	A transition scenario that assumes the world successfully reaches net zero emissions by 2050. This scenario considers necessary changes 
in the global energy sector and associated changes across all other sectors of the economy that can reasonably be modelled. 
Both scenarios rely on a combination of internal assumptions (e.g., production costs, sales and margin growth rates, product mix, etc) 
and external factors (e.g., carbon pricing, greening of energy production, decarbonisation of industry). External models available from the 
International Energy Agency, the Intergovernmental Panel on Climate Change and other institutions were supplemented where necessary 
by our expert partners’ internal models. Together, these models gave us a range of plausible assumptions designed to capture a trajectory 
of changes in demand, costs, prices, regulation, technology and capital investments in relevant markets and business segments, that could 
result in the world achieving net zero emissions by 2050. We looked at how combinations of these changes might affect us both positively 
(increased demand for sustainable products) and negatively (higher costs) and estimated the combined effect on our cash flow to both 
2030 and 2050. Outlined in the table on the next page are the materials that most affect our input costs, which may go up or down 
depending on the situation. We have modelled costs based on our exposure to global versus local changes; so, for example, glass and 
aluminium are procured globally, while the cost of energy, for example, is always local. For each scenario, we then estimated the prices 
of major input costs, where relevant by geography, and modelled the impact they would have on our operating profit.
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Reporting boundaries and methodologies
Input costs assessed in the scenario analysis by geography
Region
Global
UK
US
Canada
Mexico
Turkey
India
Africa
Asia 
Pacific
LAC
Ireland
Glass
Aluminium
Land transport
Ocean transport
Energy
Electricity
Raw materials:
Barley
Wheat
Maize
Rice
Sorghum
Sugar
Vanilla
Aniseed
Agave
Grapes
Hops
Dairy
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Promote positive drinking 
As a responsible business, we want to change the way people drink – for the better. This is why we promote moderate drinking and invest 
in education and programmes to discourage the harmful use of alcohol. Around the world, we reach audiences with messages that aim 
to change attitudes, whether it’s highlighting the harm of underage drinking or binge drinking, warning of the dangers of drink driving, 
or using our brands to highlight the importance of moderation. 
Our work speaks to audiences across the globe. We continue to innovate and look for ways to improve as we strive to engage more and 
more people through our work to promote positive drinking. This desire to learn and improve extends to how we measure and evaluate the 
impact of our work and its effect on changing people’s attitudes. 
We’ve reached our DRINKiQ target by launching it in all our markets where legally permissible, but we’re determined to continue promoting 
DRINKiQ so that consumers have access to information that can increase their knowledge and awareness of the impact of harmful drinking.
 
Target
Champion health literacy and tackle harm through DRINKiQ in every market where we live, work, source and sell
Performance measure
Number of markets that have launched DRINKiQ
Definition
•	Markets required for DRINKiQ rollout were identified during the initial project scoping phase in fiscal 20. The baseline is 
the total number of Diageo markets where we live, work, source and sell.
•	‘Launched’ means the DRINKiQ website is live and accessible by consumers in the market from November 2020.
Data preparation
•	The Global Spirit of Progress team manages all aspects of DRINKiQ design, development and deployment (except China, 
where we had to use a local vendor for build due to firewall issues).
•	We engage and manage the global agency that is responsible for building and testing every website in every market 
throughout all stages of development, user acceptance testing and deployment. 
•	The agency web developers who build the DRINKiQ website undertake a series of steps to deploy DRINKiQ to the 
production environment. Once the deployment is complete, the agency conducts testing to verify overall site performance 
and functionality is operating as intended. The completion of the testing concludes the deployment process, and the site/
updates are deemed as ‘live’ since they are available on www.drinkiq.com. 
Scope exceptions
Turkey is the only market in which we are unable to roll out DRINKiQ due to legal restrictions. Travel Retail Asia covers multiple 
geographical territories and is therefore not counted as an individual market in scope for delivering our DRINKiQ target.
Target
Leverage Diageo marketing and innovation to make moderation the norm – reaching 1 billion people with dedicated 
responsible drinking messaging
Performance measure
Number of people reached through campaigns and training specifically designed to promote moderation
Definition
We deliver responsible drinking campaigns and training through social media, viral videos, events, traditional media 
campaigns and other forms of marketing by Diageo brands. 
Scope exception
Markets are only included where we have verifiable media data provided by third-party partners.
Reporting period
1 June to 31 May. Our baseline year for calculating cumulative progress is fiscal 21.
Data preparation
Data on how many people our campaigns reach is collected by our media agency partners and reported to us. Diageo’s 
media agency partners manage measurement and verification of this data through various industry-standard practices 
optimised for each media channel.
•	Digital media: Cookies/pixels provide unique consumer identifiers. These identifiers provide us with the ability to estimate 
how many people we reach across a single campaign.
•	Non-digital media: Utilising industry-standard audience measurement for each platform, we can estimate how many 
people our campaigns reach for any TV, radio, out of home or other non-digital channel. For example, we utilise 
industry-standard metrics, such as Nielsen, to estimate viewer audience for a TV programme during which we ran an ad. 
For out of home, industry-standard measurement of foot traffic, vetted through third-party organisations, is used to 
estimate the number of people who pass by a billboard. 
To attempt to prevent double counting, we also adjust the data in the context of the adult population for each market. 
Each market’s total annual reach figure comprises either the highest number of people reached in any given quarter in that 
market, or the highest number of people reached by a specific campaign in that market, whichever is the greater.
Limitations
Reach data cannot be as accurately deduplicated over periods of time longer than a year. When reporting how many 
people we reach over time periods of longer than one fiscal year, figures for individual fiscal years are added together 
to provide a cumulative number.
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Target
Scale up our SMASHED partnership and educate 10 million young people, parents and teachers on the dangers of 
underage drinking
Performance measure
•	Number of people educated on the dangers of underage drinking through a Diageo-supported education programme
•	Number of people who confirmed changed attitudes on the dangers of underage drinking following participation in 
a Diageo-supported education programme
Definition
SMASHED is our flagship underage drinking programme, developed and delivered in partnership with Collingwood Learning 
(Collingwood) and sponsored by Diageo. Our SMASHED partnership aims to change attitudes to underage drinking through 
live theatre performances and workshops and interactive online events.
Live: A live or virtual theatre performance in schools or other community setting, with interactive workshops for students, 
resources for teachers and parents, and comprehensive evaluation.
Online: An innovative and engaging e-learning course, telling the SMASHED story though filmed clips, with interactive learning 
tools, student assessment and teacher support.
Offline: SMASHED Online can also be delivered offline through PowerPoint and video clips.
People educated: Target age group (10-17), who have participated in the full 60-minute live or online learning experience. 
Completions for online are counted only on course completion, and live completion is counted when the number, as stated 
by the teacher, has completed the full 60-minute session, which is then confirmed by the local delivery partner.
Changed attitudes: A young person who confirmed a changed attitude is someone who responds to the post-survey question 
by stating that they are less likely to drink underage. This is supported by evidenced progression through pre- and post-
performance surveys against all other learning outcomes, with the ‘less likely to drink underage’ results as the core indicator.
Scope exception
Local adaptations: Collingwood has set criteria for partners – a local delivery partner, ministry of education (or similar) and 
sponsors – to support the success of local adaptations on the ground. 
Each delivery partner will culturally and linguistically adapt the storyline and interactive elements to suit the local audience, 
with guidance from Collingwood.
Collingwood collaborates with delivery partners to ensure they comply with the original content while accommodating 
appropriate adaptations. This is also supported by programme sponsors and educational stakeholders to support links with 
existing curriculum. Evaluation questions remain consistent worldwide, both pre- and post-programme. Collingwood does not 
allow changes to the content or intent of the questions. The only adaptations made are for language translation.
Reporting period
The complexity of gathering data from hundreds of schools globally with different academic years means there is a lag 
in reporting information from our live programmes. Each financial year we include data from 1 June to 31 May. 
The baseline year for the reporting of cumulative progress towards our target is our financial year ended 30 June 2018; 
reporting is therefore cumulative progress from July 2018 onwards.
Data preparation
The number of people educated is supplied by in-country delivery partners to Collingwood. When SMASHED is delivered by 
a third-party and is partially funded by Diageo, we only claim the proportion of people educated that our funding contributes to. 
From September 2022, where an audience numbers over 500 students in one session, we have categorised these as ‘large 
scale special events’. Where large-scale events are run if there are a sufficient number of facilitators (ratio 1:200) then the full 
number of people educated is included. If the number of facilitators present is below this ratio, then the number of people in 
attendance are capped at the large-scale event number.
The number of people educated is calculated by adding together the number of people reached in each country. 
SMASHED Live operates pre- and post-evaluation surveys of at least 20% of the target audience of young learners as part 
of the programme on the day. This represents 20% of the participating schools on each tour.
The following sampling criteria have been established to measure attitude change:
•	Assess 20% of programme participants through pre- and post-evaluation surveys 
•	The participants that make the 20% sample have to be selected randomly 
•	If the sample is less than 200 people, the same participants must take the pre- and post-evaluation surveys 
•	The sample has to be approximately 50% male and 50% female. 
The number of people who confirmed changed attitude is calculated by projecting the results of the survey, for those who 
have confirmed in the post-survey question that they are less likely to drink underage, to the total number of people educated 
for the events run. 
The data, alongside supporting evidence is supplied by delivery partners and then consolidated and reviewed by Collingwood 
before being shared with us for review and reporting.
We have assumed that teachers are an impartial and accurate provider of student numbers, with clear knowledge of the 
groups allocated to SMASHED. We have also assumed that students participating in SMASHED Live and Online have 
adequate literacy skills to understand and complete written evaluation forms.
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Reporting boundaries and methodologies
Target continued
Scale up our SMASHED partnership and educate 10 million young people, parents and teachers on the dangers 
of underage drinking
Limitation
We consider double counting to be highly unlikely, given the activity is only delivered once to any audience within the 
curricular requirements for the year. No unique personal identifiers are collected, for data privacy reasons.
•	We avoid having schools run SMASHED Live and Online concurrently by offering only a single option in the vast 
majority of countries. Where two programmes are available, we mitigate the risk of duplication by offering programmes 
strategically to different school areas. In the unlikely event a school uses SMASHED Online and SMASHED Live, 
we assume that the school will utilise courses for different student groups. We mitigate the risk further by checking 
participating school data quarterly and communicating with teachers. 
•	We have assumed that the number of students expected to either repeat a year group or change secondary schools 
is negligible, based on the most recent statistics from third parties.
Target
Extend our UNITAR partnership, and promote changes in attitudes to drink driving, reaching five million people by 2030
Performance measure
•	Number of people educated about the dangers of drink driving
•	Number of people who confirmed attitudinal change on the dangers of drink driving through the Diageo 
supported programme
•	Number of law enforcement officers trained through the UNITAR High Visibility Enforcement (HVE) programme.
Definition
We run two programmes that aim to address the dangers of drink driving. Our Wrong Side of the Road (WSOTR) programme, 
primarily delivered online, is designed to help people understand the consequences of drink driving by listening to the 
repercussions for people who decided to get behind the wheel after drinking. All stories are real and aim to help prevent other 
people from making the same mistakes. The purpose is to show the effects that this decision can have on the individual and 
the people around them, helping viewers to consider what would happen if they were in a similar situation. 
We also partner with UNITAR on its high-visibility enforcement training programme, an online training course which aims to 
help government and law enforcement officials design and implement interventions that contribute to reducing the number 
of alcohol-related fatalities and injuries.
Changed attitudes: A person who confirmed a changed attitude is someone who responds to the post-experience survey 
by stating that they are less likely to drink and drive because of participating in the Diageo learning experience.
Scope exception
For programmes that are partially funded by Diageo, we only claim the proportion of people educated that our funding 
contributes to.
Reporting period
1 July to 30 June. Our baseline year is fiscal 22.
Data preparation
To measure attitude change, at least 20% of WSOTR participants are assessed through a pre- and post-programme survey 
as to whether they are less likely to drink and drive because of their participation.
The different formats are reported in the following ways:
•	Online: The online completions are reported daily through a data report pulled from Diageo’s internal PowerBi system.
•	Online through third parties: Depending on the format, their numbers can either be generated by the main system 
through the daily report or through their own reports. They must provide back-up data, which is then validated by the 
Diageo global team.
•	Offline: In markets where internet access is a challenge, we have tailored the experience to be used offline at events or 
high-footfall locations. Completions are captured on forms that are then collated and input to a report. These reports are 
submitted quarterly and reviewed and verified by the global team. 
Limitations
–
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Doing business the right way from grain to glass
Governance and ethics
We want to do business in the right way every day, everywhere. This is about ensuring our people and suppliers demonstrate integrity, live our 
values, and behave in an ethical way that underpins our Code of Conduct. We expect everyone who works for us and alongside us to uphold 
human rights and stand up for what is right, as we grow sustainably and responsibly.
Working with integrity is an important part of who we are and how we achieve our performance ambition to be the best performing, most 
trusted and respected consumer products company in the world.
Performance measure
Code of Business Conduct Mandatory Training
Definition
Annually, we request all Diageo employees to complete the Code of Business Conduct e-learning. This requires employees 
to confirm their commitment to their compliance and ethics accountabilities, and certify that they have read, understood 
and complied with our Code of Business Conduct and supporting global policies. 
Scope exception
Employees on long-term leave e.g. family leave, sickness leave
Data preparation
We deliver the Code of Business Conduct e-learning through our global online training tool, My Learning Hub, which holds 
a record of who has participated in and completed the course. Participation and completion records are reported to market 
and function leadership teams and reviewed by Business Integrity leads.
Limitation
–
Performance measure
SpeakUp
Definition
We inform all employees and third parties about our SpeakUp whistleblowing telephone service and online portal, which 
is available in all 20 of our Code languages. The service is run by an independent external party 24 hours a day, 365 days 
a year. 
Scope exception
–
Data preparation
We capture allegations reported either via SpeakUp or our internal channels in our global breach management tool.
Limitation
–
Performance measure
Reported and substantiated breaches
Definition
Reported breaches are potential breaches of our Code of Business Conduct, policies or standards made known to the 
business, either via our SpeakUp service or brought to our attention internally. Substantiated breaches are those reports that 
ultimately result in sufficient evidence being gathered to support the concern raised.
Scope exception
–
Data preparation
We update the number of substantiated breaches and Code-related leavers from previous years to include the outcomes 
of those reports made in one financial year – but for which the investigation and any associated disciplinary actions are not 
closed until the following financial year, after the Annual Report has been published. This enables us to make a full and 
accurate year-on-year comparison.
Limitation
–
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Our people
At Diageo, we strive to create an environment where all our people feel they are treated fairly and with respect. We commit to understanding 
what it means to act with integrity in our roles, to ensure we are doing business in the right way, meeting external expectations and our own 
standards. Our global health and safety ambition and strategy are designed to ensure all our people are safe when working, on site, at home 
and on the road, every day, everywhere.
Health and safety 
Performance measure
Lost-time accident frequency rate (LTAFR) 
Definition
The LTAFR is the number of lost-time accidents (LTAs) per 1,000 full-time employees (Occupational Health & Safety (OH&S) FTE). 
We define an LTA as any work-related incident resulting in injury or illness, where a healthcare professional or Diageo 
recommends one or more full days away from work, or where a job restriction or modification prevents the employee from 
conducting their routine tasks and activities and from working a full shift.
We consider an injury or illness to be work-related when an event or exposure in the work environment (including people 
working at home) either caused or contributed to the resulting condition, or significantly aggravated a medically documented 
and treated pre-existing injury or illness.
LTA numbers also include any OH&S FTE work-related fatalities.
In line with industry best practice, for the purposes of calculating this KPI, we include all Diageo employees, as well as 
temporary staff and contractors who work under our direct day-to-day supervision in our definition of OH&S FTE.
Scope exception
We have looked closely into which home-working injuries should be in scope for reporting: for example, an injury would be 
in scope if caused by an activity involving work-related equipment, such as an employee injuring a finger by getting it trapped 
in a laptop cover. If the injured person did not report the accident on the same shift to their immediate line manager and/or 
Diageo point of contact, unless there are reasonable grounds, this accident is not in scope as work-related.
Data preparation
We collect and report safety data for all sites where we have full operational control, including all office sites. It includes newly 
acquired businesses as soon as resources and systems are in place, and no later than one year after we have assumed 
operational control. We exclude safety data associated with any divestments during the current reporting year from reporting 
in the current period. 
When an incident occurs at any site (operational, corporate office, remote commercial and remote home-working 
environments), the local line manager and local health and safety team will initiate an accident investigation and root-cause 
analysis. If the accident is classified as an LTA, then the local health and safety representative will escalate to the site leadership 
team, who will in turn escalate to regional, market and global leadership. Each month, sites are required to submit details 
associated with all incidents, accidents and LTAs, as well as OH&S FTE data for their site. OH&S FTE data is primarily obtained 
directly from the global HR/payroll system or estimated using employee numbers, average number of hours worked, absences 
and overtime information, if actual data is not readily available. Contractor agencies provide data on the hours worked by 
each contractor. This is then combined with Diageo employee data to calculate the total FTE data for the month. Safety data 
and OH&S FTE data is reported at site level using our global data management system.
Limitation
We do not report LTAFR for independent contractors because of the difficulty and administrative burden in accurately 
recording headcount.
Performance measure
Total recordable accident frequency rate (TRAFR) less than 3.5
Definition
TRAFR is the sum of all work-related accidents including OH&S FTE/non-FTE (contractors) fatalities on Diageo premises, 
OH&S FTE/non-FTE LTAs, OH&S FTE medical treatment cases (MTC), and non-FTE permanent location-based MTCs, 
expressed as rate per 1,000 OH&S FTEs plus permanent location-based non FTEs.
We consider an injury or illness to be work-related when an event or exposure in the work environment (including people 
working at home) either caused or contributed to the resulting condition, or significantly aggravated a medically documented 
and treated pre-existing injury or illness.
Scope exception
As under LTAFR
Data preparation
As under LTAFR
Limitation
We do not report MTCs for non-site-based contractors.
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Reporting boundaries and methodologies
Performance measure
Number of fatalities
Definition
A fatality includes any work-related fatality of an employee or contractor under our direct supervision in their day-to-day work 
environment (on or off our premises), or any work-related fatality suffered by a third-party or contractor (non-FTEs) while on 
our premises.
We consider a fatality to be work-related when an event or exposure in the work environment (including people working 
at home) either caused or contributed to the event.
Scope exception
–
Data preparation
As under LTAFR
Limitation
–
Performance measure
Lost-time injury frequency rate (LTIFR)
Definition
Lost-time injury frequency rate (LTIFR) is a standard Occupational Safety and Health Administration (OSHA) metric that 
measures the number of lost-time injuries occurring in a workplace per one million hours worked. 
Scope exception
As under LTAFR
Data preparation
As under LTAFR
Limitation
We do not report LTIFR for independent contractors because of the difficulty and administrative burden in accurately 
recording headcount.
Performance measure
Lost-time injury rate (LTIR)
Definition
LTIR is a standard OSHA metric that calculates the number of lost-time injuries occurring in a workplace per 200,000 
hours worked.
Scope exception
As under LTAFR
Data preparation
As under LTAFR
Limitation
We do not report LTIR for independent contractors because of the difficulty and administrative burden in accurately 
recording headcount.
Performance measure
Employee Engagement Index
Definition
The Employee Engagement Index is calculated as the percentage of respondents who answer positively to three questions in 
our Your Voice survey: I am proud to work for Diageo; I would recommend Diageo as a great place to work; I am extremely 
satisfied with Diageo as a place to work.
Scope exception
–
Reporting period
The data was collected between 6 and 31 March 2023, so the results are based on feedback from participants in that 
particular window.
Data preparation
The index is calculated from an anonymous annual survey run by an independent third-party.
Limitation
Contractors and employees on long-term leave are excluded.
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Reporting boundaries and methodologies
Employee profile data
Performance measure
Average number of employees by region by gender
Average number of employees by role by gender
Definition
Employees have been allocated to the region in which 
they reside. 
Employees have been allocated to the role in which they occupy.
We define Executive as a member of the Executive 
Committee; Senior manager (SL, L2, L3) as those in top 
leadership positions excluding Executive Committee members; 
Line manager as all Diageo employees (excluding Exec 
Committee & senior managers) with one or more direct 
reports; and Supervised employee as all remaining Diageo 
employees (excluding Exec Committee, senior managers & 
Line Managers) who have no direct reports.
Scope exception
All Diageo employees are in scope for this performance 
measure. However, people data from joint ventures and 
associates where Diageo does not have operational control 
are not included.
All Diageo employees are in scope for this performance 
measure. However, people data from joint ventures and 
associates where Diageo does not have operational control 
are not included.
Data preparation
Total employee data comprises our average number 
of FTE employees across 12 months. Employee data is 
captured globally through financial and HR information 
and reporting systems.
Employee type includes Regular, Graduates and Fixed Term 
Contract (FTC) across all markets. Data from markets where 
Diageo has not implemented its global HR system is 
collected by local HR teams to form a total Diageo view.
Employee data comprises our average number of FTE 
employees across 12 months except Executives, which are 
reported as of 30 June 2023 because of the small population 
size. Employee data is captured globally through financial 
and HR information and reporting systems.
Employee type includes Regular, Graduates and Fixed Term 
Contract (FTC) across all markets. Data from markets where 
Diageo has not implemented its global HR system is collected 
by local HR teams to form a total Diageo view.
Limitation
Joint operations are included but, where Diageo does not 
have operational control, only high-level regional data 
is available.
Markets where our global HR system, Workday, is not in 
place are reliant on manual data collection or, in some 
cases, we may not be able to obtain data. These markets 
include Ypioca, Zacapa, United Spirits Limited – India 
(partial), Casamigos, Balcones, Davos, Vietnam Spirits 
and Wine, Don Papa Rum, Moet Hennessy Diageo, 
Korea (partial), Japan JWS, Angola and Northern Cyprus.
Joint operations are included but, where Diageo does not 
have operational control, only high-level regional data 
is available.
Markets where our global HR system, Workday, is not in 
place are reliant on manual data collection or, in some cases, 
we may not be able to obtain data. These markets include 
Ypioca, Zacapa, United Spirits Limited – India (partial), 
Casamigos, Balcones, Davos, Vietnam Spirits and Wine, 
Don Papa Rum, Moet Hennessy Diageo, Korea (partial), 
Japan JWS, Angola and Northern Cyprus.
Performance measure
Human rights impact assessments
Definition
Diageo has been a signatory to the UN Guiding Principles on Business and Human Rights (UNGPs) since 2014. As part of our 
commitment to act in accordance with the UNGPs, we partnered with Business for Social Responsibility in 2016 to formulate 
our human rights strategy and deliver a Human Rights Impact Assessment (HRIA) in all of our markets. An HRIA is a process 
for identifying, understanding, assessing and addressing the adverse effects of business activities on the human rights of 
impacted rights-holders such as workers and community members.
Scope exception
To date, we have conducted HRIAs in Australia, Brazil, China, Colombia, Ghana, Guatemala, India, Kenya, Mexico, the 
Middle East, Nigeria, North America (United States and Canada), North Asia (South Korea and Japan), PEBAC (Peru, 
Ecuador, Bolivia, Argentina and Chile), South Africa, Tanzania, Thailand, Turkey, Uganda and the United Kingdom. From 
fiscal 24, all direct operations will be required to complete a detailed annual human rights self assessment questionnaire, 
and take remedial action where necessary.
Data preparation
We have conducted a corporate-level risk assessment and mapped our global policies and processes against the UNGPs, 
while also considering risks in different geographies using our understanding and external reference data. 
Following the corporate-level assessment, we developed a comprehensive human rights impact assessment toolkit to guide 
our markets through a systematic review of their businesses to identify and assess potential human rights impacts, including 
modern slavery risks, throughout our value chain.
Where assessments identify human rights concerns or suggest our approach can be strengthened to better identify and 
prevent risk, we put in place robust action plans to resolve matters, working with external experts when appropriate.
Limitation
We have completed an HRIA in every market, but not every country. We discuss significant actual and potential negative 
impacts on local communities at global and local levels but do not collate and report this by specific every location.
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Champion inclusion and diversity 
Championing inclusion and diversity is at the heart of what we do, and is crucial to our purpose of ‘celebrating life, every day, everywhere’.
We’ve set ourselves ambitious goals to drive progress, inside our business and beyond. They range from increasing representation of women 
and people from ethnically diverse backgrounds in our leadership, to using our media spend and influence to promote progressive portrayals 
in marketing, working with diverse creative teams and diverse-owned suppliers and supporting people in our local communities with 
hospitality and business skills.
Ambition
Champion gender diversity, with an ambition to achieve 50% representation of women in leadership roles by 2030
Performance measure
Percentage of female leaders globally
Definition
Leadership roles comprise Executive Committee members (Exec), Senior Leaders (SL), Level 2 (L2) and Level 3 (L3) roles, 
some of which will be vacant at any point in time. Employee type includes those on regular and fixed-term contracts. 
Scope exception
Non-Executive Directors and extended workers (agency workers, independent contractors, freelancers and consultants) 
are not in scope, nor are joint ventures, joint operations or associates where Diageo does not have operational control.
Data preparation
The KPI is calculated as the average of filled leadership roles at the end of each of the four quarters across the fiscal year. 
The total leadership population is calculated from markets that collect gender information through Workday, enabling all 
employees in scope to self-disclose this information. Gender data is disclosed by employees themselves on a voluntary basis 
on our online Human Resources system (Workday). All leaders in scope have the ability to disclose gender information 
on Workday.
Limitations
Where employees have chosen not to declare their gender, this information is excluded from the gender representation data.
Ambition
Champion ethnic diversity with an ambition to increase representation of leaders from ethnically diverse backgrounds to 
45% by 2030
Performance measure
Percentage of ethnically diverse leaders globally
Definition
Leadership roles comprise Executive Committee members (Exec), Senior Leaders (SL), Level 2 (L2) and Level 3 (L3) roles, 
some of which will be vacant at any point in time. Employee type includes those on regular and fixed-term contracts. 
We define ethnically diverse as those ethnic groups who are, or were historically, systematically under-represented, 
disenfranchised and/or economically excluded.
Ethnically diverse people can be a majority or a minority in a country.
Scope exception
Non-Executive Directors and extended workers (agency workers, independent contractors, freelancers and consultants) 
are not in scope, nor are joint ventures, joint operations or associates where Diageo does not have operational control.
Data preparation
The KPI is calculated as the average of filled leadership roles at the end of each of the four quarters across the fiscal year. 
Ethnicity data is disclosed by employees on a voluntary basis on Workday. The relevant ethnicity fields are based on the 
country in which the individual is employed to ensure all are culturally relevant.
Ethnicity is selected by individuals within the Leadership population from a pre-defined list that encompasses those ethnic 
types most readily seen within the specific country, based on local census and governmental data.
We determined eight categories of ethnicity, considering Diageo’s market footprint, historic under-representation and 
alignment across regions: Asian, Black, Hispanic/Latin American, Indian, Indigenous, Middle Eastern and Turkish, Mixed 
and Other Ethnic Groups. If an individual has identified as another type of local ethnicity, the people analytics team manually 
assign them to the closest fit, for the purposes of this data gathering exercise only.
Although employees based in India (Diageo India and Diageo Global Business Operations) are on the Workday system, they 
do not submit ethnicity data through Workday due to cultural sensitivities. So, self-disclosure is not the basis for data capture. 
Nationality is obtained by the local HR team through official identification documents by employees during the onboarding 
process and disclosed on Workday. Indian nationals are recorded by HR as being of Indian ethnicity. For India-based employees 
not of Indian nationality, the local HR director confirms their ethnicity through a confidential conversation with the individual.
Based on a third-party study commissioned by Diageo, ‘Hispanic/Latin American’ is adopted as a term to categorise all 
people originating from the Latin America and Caribbean (LAC) region, including both indigenous and historically migrant 
populations. For the purposes of this data gathering exercise, all employees identifying as White with a LAC nationality have 
been recorded as Hispanic/Latin American. Non-LAC nationals are mapped to their identified ethnicity.
Limitations
Employees who identify as White, declined to self-identify or have not disclosed their ethnicity are not counted as 
ethnically diverse.
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Reporting boundaries and methodologies
Ambition
Accelerate inclusion and diversity in our value chain, increasing the share of our global spend with diverse-owned and 
disadvantaged businesses to 15% by 2030
Performance measure
Percentage of spend with diverse-owned and disadvantaged businesses
Definition
We define diverse-owned suppliers as for-profit businesses majority owned and operated by under-represented communities, 
including (but not limited to) women, ethnic minorities, LGBTQIA+, people with disabilities and other minority groups identified 
in the markets where we source. 
Although we try to define diverse businesses consistently across all our markets, we recognise that diversity can differ across 
geographical regions, cultures and communities. This means that we define ethnic minority groups on a local level rather 
than global. In addition, in some markets, we have identified other regionally specific under-represented groups to make 
sure we’re as inclusive as possible. 
Disadvantaged businesses include smallholder farmers. The UN’s Food and Agriculture Organisation describes a smallholder 
farmer as one who farms an area below the median threshold of their country. For the purposes of supplier diversity reporting, 
we consider a smallholder farmer in Africa to be one that farms an area of less than ten acres. In other markets, we use locally 
recognised guidance, such as for agave farmers in Mexico where the Consejo Regulador del Tequila defines this as 50,000 
plants. These suppliers, which can be individuals or farm families, are widely considered to be disadvantaged because of 
factors including their size and exposure to global commodity markets.
Where our direct suppliers are not diverse-owned, we will consider spend with disadvantaged businesses in their own value 
chains. This is considered as tier two direct diverse spend.
Scope exception
Spend from categories that are deemed as non-influenceable is excluded from our baseline spend and diverse spend 
calculations. Examples include customs charges, taxation and charitable donations. 
Reporting period
1 July to 30 June. Our baseline year is fiscal 22.
Data preparation
Our total global spend is extracted from our global enterprise software, SAP, and also from other local market enterprise 
resource planning systems, with spend identified as non-influenceable deducted from this amount. Our spend with diverse-
owned and disadvantaged suppliers is calculated as a percentage of this total spend, and is considered our tier 1 diverse 
spend total. 
We ask our direct suppliers who are not diverse-owned to report their spend with diverse-owned business in their supply 
chains, and we calculate our tier 2 diverse total from these submissions.
Our tier 1 and tier 2 spend calculations are combined and are reflected in the total spend reported against this target.
Limitations
–
Ambition
Provide business and hospitality skills to 200,000 people, increasing employability and improving livelihoods through 
Learning for Life and our other skills programmes
Performance measure
Number of people reached through Learning for Life and other skills programmes
Definition
Our business and hospitality skills training programmes, including Learning for Life, aim to increase participants’ employability, 
improve livelihoods and support a thriving hospitality sector that works for all. The core curriculum includes modules on 
technical skills, life skills and inclusion and diversity.
Scope exception
Only markets running business and hospitality programmes are in scope. Markets with no such programmes are Australia, 
South Korea, Turkey and Eastern Europe. For entrepreneurship programmes to be included, the metric owner determines 
that the initiatives are appropriate to be included under the definition of providing business or hospitality skills related to our 
value chain.
Data preparation
We collate the number of beneficiaries of Learning for Life and other skills programmes through participant programme 
completion records (collected face to face or via our online training systems) maintained by Diageo programme managers 
or third-party delivery partners.
We make sure double counting is avoided through programme registration and completion records.
Limitation
Accuracy relies on the quality of data provided by our third-party delivery partners.
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Reporting boundaries and methodologies
Ambition
Through the Diageo Bar Academy (DBA), we will provide 1.5 million training sessions delivering skills and resources to help 
build a thriving hospitality sector that works for all
Performance measure
Number of participations in training sessions delivered through Diageo Bar Academy
Definition
We measure the number of participations in DBA training sessions. One individual could receive multiple training sessions and 
each training participation would count towards our target. 
The DBA delivers a range of hospitality skills training to owners, managers, bartenders and wait staff with the objective of 
raising professional standards in the industry and helping professionals and businesses to thrive. Examples of course content 
include alcohol category knowledge, drink preparation skills, serving skills including responsible serving, business and bar 
management skills.
Training includes physical, virtual, e-learning and masterclass tutorials.
Scope exception
–
Data preparation
Participants in all these DBA trainings are included in this performance measure. 
Diageo obtains data on the number of participations in trainings delivered in different ways depending on the types of course, 
as outlined below:
•	Physical training: attendance number in face-to-face sessions delivered to groups of participants 
•	Virtual training: attendance number in live online sessions 
•	E-learning: number of completions of self-directed learning courses 
•	Masterclass: number of attendances at Live Tutorials and number of viewers of the recorded sessions
From fiscal 23 we include online training data from China, where different digital platforms are used.
Limitation
Accuracy of data in case of physical trainings relies on third-party delivery partners.
Ambition
Ensure 50% of beneficiaries of our community programmes are women and that our community programmes are designed 
to enhance diversity and inclusion of under-represented groups
Performance measure
Percentage of beneficiaries of our community programmes who are women
Definition
For Learning for Life (or equivalent) programmes, we measure the number and percentage of women who have gained 
business and hospitality skills. 
Scope exception
Our scope currently includes female beneficiaries of registered business and hospitality skills programmes. In future, the scope 
of this target will also include female representation on our water sanitation and hygiene (WASH) committees and women 
who benefit from initiatives such as our smallholder farmer programmes. 
Data preparation
For Learning for Life programmes (and other skills programmes), we collect data on the number of female participants 
through training records managed by Diageo programme managers or third-party delivery partners. 
Limitation
Accuracy relies on the quality of data provided by our third-party delivery partners.
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Pioneer grain-to-glass sustainability 
Preserve water for life
Our continued long-term success depends on the people and planet around us. Our work to pioneer grain-to-glass sustainability is divided 
into three areas: preserve water for life, accelerate to a low-carbon world and become sustainable by design.
Our Water Stewardship Strategy, Preserve Water for Life, outlines how we manage water in our supply chain, operations and communities, 
as well as advocate for collective action to improve water security. We started our decarbonisation journey in 2008, and we aim to reach net 
zero across our direct operations by 2030, using 100% renewable energy everywhere we operate. We are also committed to reducing our 
value chain carbon emissions by 50% by 2030. We are working to reduce our carbon footprint by reducing packaging, increasing recycled 
content and are focusing on regenerative agriculture.
Our strategy is based on best practice water stewardship in three areas: water accessibility, availability and quality. We also are working 
in partnership to better manage water globally and to lead collective action in critical water basins.
Target
Reduce water use in our operations with a 40% improvement in water-use efficiency in water-stressed areas and a 30% 
improvement across the company 
Performance measure
Water use efficiency per litre of product packaged (Litres/Litre)
Additional performance 
measures
Percentage improvement in litres of water used per litre of product packaged from the prior year
Total mains water withdrawn (cubic metres)
Total groundwater withdrawn (cubic metres)
Total surface water withdrawn (cubic metres) 
Total water withdrawn (cubic metres)
Definition
We prepare and report water withdrawal (use) from sites where we have operational control, using internally developed 
reporting methodologies based on the GRI Standards. 
Water withdrawal includes water obtained from ground water, surface water, mains supply and water delivered to the site 
by tanker, less any clean water provided back to local communities directly from a site. Uncontaminated water abstracted 
and returned to the same source under local consent, water abstracted from the sea, and rainwater collection are excluded 
from reported water withdrawal data. 
For water-stressed only: We define water-stressed areas using the World Resources Institute (WRI) Aqueduct tool, 
UN definitions and internal survey information. During the reporting period, we identified 40 of our sites as located within 
water-stressed areas. An assessment of our sites located in water-stressed areas is completed every two years and includes 
any new-build or acquired sites and excludes any sites divested.
Scope exception
The volume of water used at Diageo-operated agricultural lands – in Brazil, Mexico and Turkey – is quantified and 
reported separately. 
Data preparation
Water withdrawal (use) is measured primarily from meter readings and invoices. In limited cases, estimates are used. Water 
efficiency per litre of packaged product is calculated by dividing total water withdrawal by the total packaged volume. 
We use litres of packaged product as the measure for comparison, because this indicates how much water has been used 
relative to the amount of finished product that has been packaged. We measure litres of packaged product by site and 
aggregate them at group level. For fiscal 23, the total volume packaged used for the denominator in efficiency indicators 
is 3,801,239,185 litresΔ.
Limitation
In limited cases (e.g., failure or malfunction of water meters), estimates are used for water withdrawals.
∆ Within PwC’s independent limited assurance scope – see pages 263-266 of our Annual Report. 
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Reporting boundaries and methodologies
Target
Replenish more water than we use for our operations for all of our sites in water-stressed areas by 2026
Performance measure
Annual volumetric replenishment capacity of projects developed (m3)
Definition
This performance measure is total water replenishment capacity created in fiscal 23 in water-stressed areas. We define 
replenishment (or volumetric water benefit), in line with the WRI, as the volume of water resulting from water stewardship 
activities that modify the hydrology in a beneficial way and/or help reduce shared water challenges, improve water 
stewardship outcomes, and meet the targets of Sustainable Development Goal 6.
Replenishment capacity created by replenishment projects is calculated by reference to Diageo’s Water Replenishment 
Implementation Guide and Technical Protocol. When projects are delivered by a third-party and partially funded by Diageo, 
to avoid double counting, we only claim the proportion of volumetric capacity attributable to Diageo.
We define water-stressed areas using the WRI Aqueduct tool (at the Minor Basin level), UN definitions and internal survey 
information. During the reporting period, we identified 40 of our sites as located within water-stressed areas. An assessment 
of our sites located in water-stressed areas is completed every two years and includes any new-build or acquired sites and 
excludes any sites divested. In order to be considered within the annual volumetric replenishment capacity, replenishment 
projects need to be in a water-stressed area (i.e., a site’s water catchment and/or water-stressed water basins from which 
we source local raw materials).
The methodology for calculating the volume of water replenished for Diageo’s Water Replenishment Programme is based 
on the WRI’s Volumetric Water Benefit Accounting: A Method For Implementing and Valuing Water Stewardship Activities 
(2019, www.wri.org/research/volumetric-water-benefit-accounting-vwba-method-implementing-and-valuing-water-stewardship), 
which is a “comprehensive, standardised and science-based methodology to calculate and evaluate the benefits of water 
stewardship activities.” We detail the approach adopted and mathematical calculations applied in the Diageo Water 
Replenishment Programme Technical Protocol (2019) and provide a step-by-step implementation guide for markets to ensure 
consistency and robust controls: Diageo Water Replenishment Implementation Guide (2022).
Scope exception
–
Reporting period
1 June to 31 May (previously 16 June to 15 June; see under Limitation, below).
Data preparation
Data required to calculate the indicative volume of water replenished is collected by an implementation partner and 
confirmed on completion of the project. This data is then validated by an external validator, and confirmed by the Diageo 
global lead for water. The Diageo Water Replenishment Implementation Guide provides templates for calculating water 
volume replenished – the estimated volumes are pre-validated by the global team before the project is implemented. 
Volumes are then validated again after the commissioning of the project. 
The project volumes for fiscal 26 are restated every year to reflect latest estimates and previous fiscal actuals.
Limitation
The complexity of gathering data from multiple projects globally means there can be a delay in reporting information. This 
means we currently include data from projects completed by 31 May 2023 to allow us to consolidate data by fiscal year end.
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Reporting boundaries and methodologies
Target
Invest in improving access to clean water, sanitation and hygiene (WASH) in communities near our sites and local 
sourcing areas in all of our water-stressed markets
Performance measure
Percentage of water-stressed markets with investment in WASH
Definition
This target tracks funding committed and spent on new WASH facilities to improve local community access to clean water, 
sanitation or hygiene in communities within the same water basin as our sites and local sourcing areas.
We usually define Diageo’s markets as countries or locations where we operate or sell our products. To ensure comprehensive 
coverage, this KPI instead defines each market as an individual country, as set out in our Annual Report on page 40. 
This means that the KPI considers water stress and investment at a country level, rather than at a market level.
We define water-stressed areas using the WRI Aqueduct tool at the minor basin level, UN definitions and internal survey 
information. During the reporting period, we identified 40 of our sites across 12 countries as located in water-stressed areas, 
with 34 of these locations currently operational and six non-operational. An assessment of our sites located in water-stressed 
areas is completed every two years and includes any new-build or acquired sites and excludes any sites divested.
The KPI is calculated as a percentage of the number of water-stressed markets in which Diageo has invested in 
WASH programmes in the same minor water basin as the site, divided by the total number of (in scope) water-stressed 
markets in which Diageo operates.
Scope exception
The scope excludes water-stressed markets in which Diageo operates where there is no demand or requirement for new 
community WASH projects (Turkey, Indonesia, Seychelles). 
These exclusions are verified by an expert implementing partner, and are based on government, WRI or World Health 
Organization information on WASH risk and availability.
It also excludes Diageo WASH projects in markets that are not assessed as water stressed or where we do not have direct 
operations (for example, Myanmar).
Reporting period
1 June to 31 May
Data preparation
Data on the WASH programmes, including locations, clean water yield, and the number of people (including the number 
of women) who benefit is calculated by NGO delivery partners and validated by an external validator.
The KPI is calculated as a percentage, i.e., the total number of water-stressed markets in which Diageo has invested in WASH 
programmes divided by the total number of (in scope) water-stressed markets in which Diageo operates.
Limitation
The complexity of gathering data from multiple projects globally means there can be a delay in reporting information. This 
means we currently include data from projects completed by 31 May 2023 to allow us to consolidate data by fiscal year end.
Target
Engage in collective action in all of our priority water basins to improve water accessibility, availability and quality and 
contribute to a net positive water impact
Performance measure
Percentage of priority water basins with collective action participation
Definition
We identify priority water basins using a Diageo criticality assessment (based on expert judgement and consumption volumes) 
and those facing high water risk, according to the WRI Aqueduct tool. These basins would benefit most from Diageo 
operational sites participating in collective action to address identified water challenges. 
Collective action in water stewardship includes multi-stakeholder water management initiatives or projects that involve 
interaction with government entities, local communities, NGOs and/or civil society organisations.
Scope exception
–
Data preparation
Priority water basins with collective action participation are reported at country level and tracked by the Diageo global 
metric owner.
Limitation
–
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Accelerating to a low-carbon world
We know that our planet needs significant, science-based action to create a sustainable future. We have set ourselves bold targets to reach 
net zero carbon across our operations and to work with our suppliers to reduce our value chain carbon emissions by 50% by 2030.
Target
Become net zero carbon in our direct operations (Scope 1 and 2)
Performance measure
•	Direct carbon emissions by weight (market/net based) (1,000 tonnes CO2e)
•	Indirect carbon emissions by weight (market/net based) (1,000 tonnes CO2e)
•	Percentage reduction in absolute carbon emissions (direct and indirect carbon emissions by weight (market/net based)) 
from the prior year 
•	Market based (net) intensity ratio of GHG emissions (grams CO2e per litre of packaged product)
•	Direct carbon emissions by weight (location/gross based) (1,000 tonnes Co2e)
•	Indirect carbon emissions by weight (location/gross based) (1,000 tonnes CO2e)
•	Location based (gross intensity) ratio of GHG emissions (grams CO2e per litre of packaged product)
Definition
Scope 1 and 2 emissions are presented as the absolute GHG emissions (Direct – Scope 1 emissions from on-site energy 
consumption of fuel sources and Indirect – Scope 2 emissions from purchased electricity and heat) in 1,000 tonnes CO2e using 
market-based and location-based reporting methodology. Market-based and location-based GHG emission intensity ratio is 
calculated as grammes per CO2e per litre, using direct operations packaged product volume in litres for fiscal 23.
Scope exception
We exclude minor quantities of Scope 1 emissions up to 0.5% of a site’s emissions, to a maximum of 50 tonnes CO2e per 
emission source, as well as the carbon emissions associated with biogas flaring, since they are determined to be insignificant 
to our overall impacts. More details can be found in the Scope section of General reporting methodology and boundaries, 
covering both non-environmental and environmental metric reporting.
Biological/biogenic CO2 emissions from the combustion of bioenergy, and from direct operations processes such as 
fermentation to create alcohol are outside of scope and are reported separately. However, bioenergy CO2e emissions 
associated with methane and nitrous oxides that are not absorbed in bioenergy feedstock growth are included in 
Scope 1 emissions.
We do not include carbon offsets or credits in the Scope 1 and 2 GHG emissions market-based or location-based approach.
Data preparation
We calculate CO2e emissions data based on direct measurement of energy use (meter readings/invoices) for the majority 
of sites.
Market-based emissions
We externally report Scope 1 and 2 GHG emissions using metric tonnes of CO2e to compare the emissions from the seven 
main GHGs based on their global warming potential. We base our CO2e reduction targets and reporting protocols 
(since 2007) on market-based emissions.
Direct (Scope 1) emissions
We report fuel consumption by fuel type at site level using the environmental management system. Using calorific values, 
the fuel is then converted to energy consumption, in kilowatt hours (kWh), by fuel type, and is multiplied by the relevant CO2e 
emission factor to derive total CO2e emissions. Scope 1 emission factors for fuels are typically average fuel CO2e emissions 
factors and calorific values (the latest available at the end of the reporting year) from the UK Government Department for 
Energy Security and Net Zero. We apply product-specific factors, where available. Energy attribute certificates (EACs), 
derived from our distillery by-product feedstock and processed by a third-party to generate biomethane, form a component 
of our decarbonisation, together with purchased renewable gas EACs (i.e., from certificate-backed biomethane supplied 
indirectly through the natural gas grid). This is reflected in data preparation and aggregation.
Indirect (Scope 2) emissions
We report GHG emissions from electricity (Scope 2) as market-based emissions in line with the WRI/WBCSD GHG Protocol 
Scope 2 guidance 2015. Electricity consumption recorded on our environmental management system is multiplied by 
emissions factors specified in EACs, contracts, power purchase agreements and supplier utility emissions, as detailed in the 
GHG Protocol’s Scope 2 guidance. We use GHG Protocol Scope 2 to ensure EACs and associated financial instruments meet 
the required standards. GHG Emission factors relating to indirect, Scope 2, emissions are updated with latest available by end 
of the financial year.
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Reporting boundaries and methodologies
Target
Become net zero carbon in our direct operations (Scope 1 and 2) continued
Data preparation 
continued
Fugitive and owned agricultural (Scope 1) emissions
We calculate fugitive emissions based on the amount of emitted ozone-depleting substances and fluorinated gases, 
multiplied by the relevant emission factor to represent the global warming potential in tonnes of CO2e. Annually, each 
site reports the quantity (mass) of each material/gas emitted based any added/topped-up amount, reported via the 
environmental management system. The mass of each of emitted ozone-depleting substance and fluorinated gas is multiplied 
by the relevant emission factor and then added together to report the equivalent GHG emissions in tonnes of CO2e.
We calculate agricultural emissions from direct operations owned and operated agricultural land only based on fertiliser use. 
The annual quantity (mass) of inorganic fertiliser is multiplied by the percentage of nitrogen content and by the relevant 
GHG emission and conversion factors (i.e., nitrogen to nitrous oxide, nitrous oxide GHG emission factor) to determine the 
equivalent tonnes CO2e emissions.
Scope 1 and Scope 2 data aggregation
Total direct and indirect carbon emissions by weight (market/net based) (1,000 tonnes CO2e) is the aggregation of Scope 1 
and 2 GHG emissions with fugitive and owned agriculture emissions for external reporting annually. The percentage reduction 
in absolute carbon emissions (direct and indirect carbon emissions by weight (market/net based)) from the prior year is 
a percentage change calculation with reference to the corresponding prior year figure.
Our net zero emissions target for 2030 remains consistent with earlier reporting protocols and is based on market-
based emissions.
Location-based emissions and emission intensity ratios
We externally report location-based Scope 1 and 2 GHG emissions using metric tonnes of CO2e to compare the emissions 
from the seven main GHGs based on their global warming potential. Using a location-based approach, direct operations 
emissions are reported without the benefit of indirectly supplied renewable energy, and emissions intensity ratios demonstrate 
the overall emission efficiency per unit of production.
Location-based Direct (Scope 1) emissions
Fuel consumption data collection, reporting and conversion to energy using relevant calorific values remains the same 
as detailed in the market-based approach above. The direct energy data is multiplied by Scope 1 emission factors for fuels, 
typically average fuel CO2e emissions factors (the latest available at the end of the reporting year) from the UK Government 
Department for Energy Security and Net Zero. We apply product-specific factors, where available, but the specific emission 
factors associated with energy attribute certificates (EACs) are not used (i.e., indirectly supplied renewable gas through grid 
is reported using standard, natural gas grid emission factors).
Location-based Indirect (Scope 2) emissions
We report GHG emissions from electricity (Scope 2) as location-based emissions in line with the WRI/WBCSD GHG Protocol 
Scope 2 guidance 2015. Grid imported electricity consumption recorded on our environmental management system is 
multiplied by regional or sub-national emission factors (where available) to calculate Scope 2 location-based GHG emissions. 
These include, for example, CER (Ireland), BEIS (United Kingdom), the National Inventory Report (Canada), US eGRID 
(United States) and the Indian power sector report (India). In all other cases, country or sub-regional factors are provided 
by the International Energy Agency (IEA). Location-based emission factors are reviewed annually and updated with latest 
available at the end of the financial year.
Overall location-based emissions
Total direct and indirect carbon emissions by weight (location/gross based) (1,000 tonnes CO2e) is the aggregation of Scope 1 
and 2 GHG emissions with fugitive and owned agriculture emissions for external reporting annually.
GHG emission intensity ratios
Total, aggregated direct operations market-based and location-based emissions (as detailed above) are divided by the 
volume of direct operations packaged product reported in the same period. The market-based and location-based emissions 
are converted to grammes of CO2e and the volume of packaged product is reported in litres to generate relevant GHG 
emission intensity ratios in g CO2e/litre packaged.
For fiscal 23, the total volume packaged used for the denominator in intensity indicators is 3,801,239,185 litresΔ.
Limitation
Where invoices or site meter readings are not available – due, for example, to timing differences or metering issues – 
we estimate consumption. 
Δ Within PwC’s independent limited assurance scope – see our Annual Report on pages 263-266.
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Reporting boundaries and methodologies
Target
Reduce our value chain (Scope 3) carbon emissions by 50%
Performance measure
Percentage reduction in absolute carbon emissions (ktCO2e) from the prior year 
Definition
Scope 3 emissions are all indirect emissions that occur in the value chain of the reporting company, including both upstream 
and downstream emissions (but excluding Scope 2 emissions from purchased power and heat). 
The CO2e emissions relating to all categories of materials and services within our value chain include those from purchased 
raw materials, packaging, third-party manufacturers, consumer use and disposal. We aggregate emissions from upstream 
and downstream logistics and distribution, including Category 4 logistics emissions. In addition, we include Category 2 capital 
goods, Category 3 fuels and energy-related activities, Category 5 waste generated in operations, Category 6 business travel 
and Category 7 employee commuting. The emissions attributable to all categories of materials and services provide a total 
value chain, Scope 3 footprint.
We do not include carbon offsets or credits in the Scope 3 GHG emissions market-based or location-based approach.
Scope exception
Any categories of Scope 3 emissions not listed in the definition above are not currently included in our external reporting.
Data preparation
We report Scope 3 GHG emissions using metric tonnes of CO2e to compare the emissions from the seven main GHGs 
based on their global warming potential. We base our CO2e reduction targets and reporting protocols on real consumption 
location-based emissions. We report in line with the WRI/WBCSD GHG Protocol Corporate Value Chain (Scope 3) 
Accounting and Reporting Standard, 2011.
We calculate CO2e emissions data on the basis of the volume of materials purchased, services provided, capital equipment 
purchased and distances travelled for upstream/downstream logistics. Supplier-specific emission factors and/or emission 
factors from literature are then applied to the component type to derive an absolute CO2e emissions volume, in metric tonnes.
Category 4, Upstream Transportation and Distribution Emissions
We track transportation distance through internal data systems to calculate the distance load, transport mode and type, 
applying the distance-based methodology. We apply GLEC emission factors for all transportation modes except for ocean 
freight, where we apply CCWG.
Limitation
–
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Reporting boundaries and methodologies
Target
Use 100% renewable energy across all our direct operations 
Performance measure
Change in percentage of renewable energy across our direct operations
Total direct (renewable and non-renewable) energy consumption (TJ)
Direct energy efficiency (MJ/litre packaged) 
Indirect energy efficiency (MJ/litre packaged)
Total direct and indirect energy efficiency (MJ/litre packaged)
Definition
We report total energy use and renewable energy use in megawatt hours (MWh) and/or terajoules (TJ). Total energy and 
renewable energy use are determined from direct and indirect energy consumption; energy generated on our sites and 
purchased energy. We determine direct energy (renewable/non-renewable) from the quantity of different fuel types (in metric 
tonnes, litres) of renewable and non-renewable fuels, and by applying the relevant calorific value (either from BEIS or the 
supplier). We measure indirect energy (renewable/non-renewable) in MWh and/or TJ from energy utilities or suppliers and/
or by applying the relevant EACs. 
For avoidance of doubt, we include directly connected renewable energy generated on or near our sites, where all energy is 
used on site and no EACs are created (e.g., roof-mounted solar panels with all generated renewable electricity used on site).
Scope exception
We exclude minor energy sources that account for less than 0.5% of a site’s overall Scope 1 and 2 emissions, up to a maximum 
of 50 t CO2e of individual emission source. They are considered immaterial to our overall impact. 
Data preparation
We report total energy and renewable energy in MWh and/or TJ. We calculate direct and indirect energy data based on 
the direct measurement of energy use (meter readings/invoices for volumes of fuel supplied) for the majority of sites. 
We report fuel consumption by fuel type at site level using the environmental management system. Using calorific values, 
the fuel is then converted to energy consumption, in kWh, by fuel type and classified as either renewable or non-renewable 
based on fuel type or source. EACs, derived from our distillery by-product feedstock and processed by a third-party to 
generate biogas, together with purchased renewable gas EACs, are applied to relevant natural gas supplied to sites via 
a common carrier pipeline/network. This is reflected in data preparation and aggregation.
All indirect energy generated and used on site, along with purchased indirect energy supplied through the grid is classified 
as renewable by the allocation of EACs, contracts, power purchase agreements and supplier specific utility factors, where relevant.
To achieve the percentage of renewable energy use, we divide total renewable energy into direct and indirect energy supplies 
(in MWh) by total energy use, comprising all reported energy sources (MWh).
Direct energy efficiency (MJ/L); indirect energy efficiency (MJ/L) and total energy efficiency (MJ/L) are determined from total 
direct energy (MJ), total indirect energy (MJ) and total energy (MJ) and dividing by packaged volume (litres).
Limitation
Energy data is calculated based on direct measurement of energy use (meter readings/invoices) for the majority of sites. 
Where invoices are not available – due, for example, to timing differences – consumption is estimated. 
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Introduction
Diageo is committed to understanding and reducing carbon emissions along the total value chain, including Scope 3 indirect emissions. 
A key part of Diageo’s Scope 3 profile is emissions from the transportation and distribution of finished goods by third parties. We continue to 
refine and improve the accuracy and completeness of data captured for this area. This has resulted in a comprehensive understanding of the 
extent of greenhouse gas emissions associated with the transport and distribution of finished goods, which has been subject to independent 
limited assurance by PricewaterhouseCoopers LLP (PwC). This document presents the data and methodologies associated with 
Diageo’s scope 3 logistics CO2e emissions. 
Performance data for the year ended 30 June 2020, 2021 and 2022
Dataset
Region
2020 CO2e 
emissions (tonnes)
2021 CO2e 
emissions (tonnes)
2022 CO2e 
emissions (tonnes)
Road and rail
North America
104,462
131,139
123,319
Europe
45,835
52,963
62,435
Asia Pacific
12,216
14,263
14,568
Latin America and Caribbean
23,967
27,355
30,666
Africa
51,231
50,540
52,907
Ocean 
Global
48,486
67,720
73,045
Total
286,197*
343,980*
356,940
	Within PwC’s independent limited assurance scope. For further detail see pages 116-119.
*Restated to reflect updated emission factors from CCWG and TEU calculations for ocean freight and applying emission factors from Eco TransIT; European Standard EN16258 
(Methodology for calculation and declaration of energy consumption and GHG emissions of transport services).
Reporting guidelines
The methodology used for the reporting of Diageo’s Scope 3 logistics carbon emissions is based on the WRI/WBCSD Greenhouse Gas 
Reporting Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (the Protocol) and relates specifically to Category 4 of 
the Protocol (emissions from upstream transportation and distribution). The scope of our reporting and detailed methodology is presented below.
Data being reported
In scope
Out of scope
CO2e emissions 
from transport and 
distribution of finished 
goods and the return 
of empty reusable 
packaging containers 
– that is, kegs and 
returnable glass bottles
Distribution of finished goods owned by 
operationally controlled Diageo sites from 
point of production to point of sale to first 
paying customer.
Transportation of empty reusable packaging 
containers from point of collection to 
operationally controlled Diageo site.
Items in transit at the year end are included 
within the scope of reporting.
All other elements of WRI Scope 3 Category 4, and specifically:
•	Transportation and distribution of finished goods by air freight
•	Transportation and distribution of products purchased by 
Diageo between tier one suppliers and our own operations
•	Transportation and distribution of products (unfinished goods) 
between Diageo facilities and/or between third-party producers 
and Diageo facilities
•	Transportation and distribution of Diageo-finished goods where 
ownership of the goods has transferred to the customer
•	Deliveries from joint ventures and associates
•	Logistics and distribution carbon emissions data, excludes USL (India) 
and Russia.
The methodology utilised by Diageo to aggregate and calculate carbon emissions of finished goods from Diageo’s controlled logistics to the 
first paying customer reflects three distinct modes of transportation and geographic regions: 
1.	 Emissions from ocean freight
2.	Emissions from road and rail transport in North America
3.	Emissions from road and rail transport in Rest-of-World.
Scope 3 distribution and logistics 
GHG emissions report
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Reporting boundaries and methodologies
1.	Emissions from ocean freight
Emissions from ocean freight are calculated once a year using the following methodology:
1.	 Diageo-controlled freight is captured through booking data maintained in SAP or local Enterprise Resource Planning (ERP) systems. 
Data on the number and size of actual deliveries is extracted from these systems for the manufacturing sites in the group. 
2.	The size of deliveries is converted to twenty-foot equivalent (TEU), based on the type of container using Clean Cargo Working Group (CCWG)1 
guidance. TEU is a standardised unit of measure for container capacity. Where less than a container load is to be delivered, this is excluded 
from the ocean freight calculation and included instead within the Rest-of-World Road and Rail modelling as though it was transported 
by road. 
3.	MarineTraffic’s global vessels tracking tools are used to provide information on ocean freight routes from which distance travelled for the 
delivery can be calculated (TEU kilometre). For deliveries where generic routes are used and port-to-port points are not defined, the sea 
distances are obtained via CERDI Sea Distance (Centre d’Études et de Recherches sur le Dévelopment International (CERDI), which is 
recommended as a source for sea distances in the GLEC Framework).
4.	CO2e emissions are calculated by applying emission factors developed by the CCWG2 in grams CO2e per TEU kilometre. Emission 
factors are selected based on container type (refrigerated or non-refrigerated) and size, and the shipping lane used. For intra-Asia lanes, 
an average factor is applied, because intra-Asia lanes are a very modest contributor to the overall emissions. 
5.	To determine total CO2e emissions per year, the appropriate emission factor is multiplied by TEU kilometre travelled. This is then multiplied 
by the number of TEU containers shipped over that lane during the course of one year. The following figure summarises the calculation 
methodology for ocean:
∑
Distance (km)
x
TEUs
x
CCWG1 emission factor  
(g CO2e/TEU km)
÷
1000
=
GHG emission (kg CO2e)
1.	Clean Cargo Working Group Carbon Emissions Accounting Methodology, The Clean Cargo Working Group Standard Methodology for Credible and Comparable CO2 Emissions 
Calculations and Benchmarking in the Ocean Container Shipping Sector, June 2015.
2.	For CCWG 2021 Global Maritime Trade Lanes Emissions Factors, see www.clean-cargo.org/news-and-insights/2021/10/30/2021-clean-cargo-emissions-factors-report-published 
	 https://zenodo.org/record/46822#.ZAXeCXbMKUm
2.	Emissions from road and rail transport in North America 
Emissions from road and rail in North America are calculated once a year using the following methodology:
1.	 Diageo collects data from third-party logistics providers on road and rail deliveries made in North America, including carriers used, 
distance travelled, weight (excluding pallet weights) and mode of transportation.
2.	This carrier activity data is entered into the EPA SmartWay tool, which contains carrier-specific EPA emission factors based on logistics data 
submitted to the EPA by SmartWay-affiliated carriers and SmartWay-assigned modal types. Performance data for truck, multi-modal and 
logistics partners correspond to data submissions for the 2022 fiscal year. Conservative emission factors are applied to non-SmartWay-
affiliated carriers based on the lowest-performing partners. 
3.	The SmartWay tool calculates mass CO2e emissions (US tons) per carrier by multiplying the total ton-miles (one ton moving one mile) 
per carrier by the carrier-specific emission factors in CO2e grams per ton-mile. CO2e emissions in US tons are then converted to metric 
tonnes for reporting purposes. 
4.	Road and rail transport for North America includes final road and rail transport following ocean transport/global lanes. 
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Reporting boundaries and methodologies
3.	Emissions from road and rail transport in Rest-of-World
Emissions from road and rail outside North America are calculated following the GHG protocol and encompass the following:
Primary emissions from transportation between (i) point of production and intermediary delivery centre – stock transfers, 
or (ii) point of production and port, or port and paying customer (supplementary to the ocean freight emissions).
Secondary emissions from transportation between point of production or Diageo-owned distribution centre to point of sale to first 
paying customer.
1.	 Delivery line-level data is collated based on the number and size of deliveries made during the year, captured from SAP systems for each 
country in which Diageo has an in-market presence. 
2.	All locations are geocoded using an API integrated with BingMaps called Geocode&Distance. To determine distance travelled by 
shipments, it is necessary to geocode (latitude and longitude) each shipment start point and destination as extracted from the SAP/ERP 
system. The same API used for geocoding is used to calculate the distance travelled, by using real routes mapped in BingMaps from 
point-to-point geocode-mapped latitude and longitude.
3.	For road and rail, a web version tool called EcoTransIT1 is applied to calculate the distance between terminals mapped in each delivery 
route. The EURO-standard lanes are used for each country (for road only).
4.	Delivery profile data and vehicle type are collated from delivery number-derived information in SAP. Irrespective of where the delivery 
is taking place, it is assumed that vehicle type is one of six vehicle options. The selection of the vehicle type is based on the gross weight 
of the shipments. In certain limited instances, the vehicle type and load will be shared with goods and items from other producers, that is, 
non-Diageo product, to optimise load fill and routes. In these instances, Diageo accounts for the GHG emissions proportional to the gross 
weight of the Diageo products and assuming an 85% level of utilisation of the vehicle in total (including non-Diageo products in the 
utilisation assumption). 
5.	Applying the distances travelled, the conversion to CO2e emissions is determined following the mode and the collated delivery profile 
information, summarised as follows: 
a)	Road: 
∑
Distance (km)
x
Weight transported  
(tons)
x
EcoTransIT 1 emission factor 
(kg CO2e/ton km)
=
GHG emission (kg CO2e)
b)	Rail:
∑
Distance (km)
x
TEUs
x
EcoTransIT 1 emission factor 
(kg CO2e/TEU km)
=
GHG emission (kg CO2e)
where:
•	The emission factors are derived from EcoTransIT, consistent with European Standard EN16258 (Methodology for calculation and 
declaration of energy consumption and GHG emissions of transport services) 
•	The emission factors are captured from EcoTransIT based on the region where the delivery travelled, type of vehicle and truck utilisation, 
ensuring the most accurate emission factor for each delivery
•	For rail, the TEUs calculation is applied as outlined in section 1 above for oceans.
1.	For the EcoTransIT web version tool, see www.ecotransit.world/en/emissioncalculator/
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Become sustainable by design
We’ve already made progress in reducing our environmental impact, and we continue to work hard to meet our ‘Society 2030: Spirit of Progress‘ 
goals and become sustainable by design by reducing packaging, increasing recycled content and eliminating waste.
Target
Achieve zero waste in our direct operations and zero waste to landfill in our supply chain
Performance measures
Percentage reduction in total waste sent to landfill from the prior year
Total volume of waste sent to landfill (tonnes)
Definition
We record the type and quantity of all waste to landfill using our internal environmental reporting methodologies and GRI 
Standards. The definition of waste to landfill includes all hazardous waste and all unwanted or discarded material produced 
in solid, sludge or liquid form from manufacturing and office sites, except asbestos waste and/or other waste required by 
national or state legislation to be landfilled in either specified registered sites or other landfill sites. The definition includes all 
refuse, garbage, construction debris, treatment and process sludge, and materials that a site has been unable to reclaim, 
reuse or recover. 
We consider we have achieved zero waste to landfill if we have disposed of less than 0.2% of baseline waste-to-landfill 
volume during the year. Some 0.2% of baseline waste-to-landfill volume equates to 200 tonnes and excludes any waste 
we are required to dispose to landfill under local regulations.
Last year, we reported that a third-party contractor at one of our facilities in Australia had incorrectly diverted waste material 
to landfill.
This prompted a global review in fiscal 23 of more than 350 waste handlers and our own internal waste management 
practices, aiming to strengthen our controls and avoid similar issues in the future. This hadn’t been possible during the 
Covid-19 pandemic because of restrictions on site visits. The review of waste handlers identified 111 metric tonnes of waste that 
hadn’t been accounted for in fiscal 22, taking the total volume of waste sent to landfill to 279 tonnes. We have now included 
this in waste-to-landfill volumes for fiscal 22, representing 0.028% of the 984,057 tonnes we handled in that year. We’ll 
continue to assess our waste handlers regularly and improve our internal controls to maintain our zero waste to landfill status.
Scope exception
–
Data preparation
Sites typically collect primary waste data from weighbridge tickets and invoices from waste handlers. Data is reported by 
waste type at site level using the environmental management system. 
Limitation
Incidents may occur where small quantities of waste are sent to landfill by accident or because of operational changes, 
such as acquiring new sites, changing who handles our waste and issues with waste disposal suppliers. 
Target
Continue our work to reduce total packaging (delivering a 10% reduction in packaging weight)
Performance measure
Percentage reduction of total packaging (by weight)
Definition
We determine changes to packaging weight by quantifying the weight reduction in grammes multiplied by the number 
of product lines (SKUs) affected, on an annualised basis.
Scope exception
–
Data preparation
We collate packaging material volume data from enterprise software, including SAP and other sources, for total volume 
of packaging purchased and weight. We verify weight data through quarterly supplier questionnaires. 
Limitation
Reporting relies on suppliers’ technical information and supporting supplementary information. 
Target
Continue our work to increase recycled content on our packaging (increasing the percentage of recycled content of our 
packaging to 60%)
Performance measure
Change in percentage of recycled content (by weight)
Definition
We determine recycled content by establishing the percentage weight of non-virgin materials used to generate the 
packaging components. 
Scope exception
–
Data preparation
We collate packaging material volume data from enterprise software, including SAP and other sources, for the total volume 
of packaging purchased. We collect recycled content data through quarterly supplier questionnaires and then consolidate 
and internally verify it. 
Limitation
Reporting relies on suppliers’ technical information and supporting supplementary information.
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Reporting boundaries and methodologies
Target
Ensure 100% of our packaging is widely recyclable (or reusable/compostable)
Performance measure
Percentage of packaging recyclable (by weight)
Definition
For fiscal 23, we are reporting our ‘technically recyclable’ number. This includes packaging that it is technically possible 
to recycle, but does not take into account whether the collection, sorting and recycling of the package happens in practice, 
at scale and at viable cost.
Scope exception
–
Data preparation
Packaging material volume data is collated from enterprise software, including SAP (materials supplied) and other sources. 
It is then consolidated and internally verified, based on the best available information.
Limitation
Reporting relies on suppliers’ technical information and supporting supplementary information. 
Target
Achieve 40% recycled content in our plastic bottles by 2025, and 100% by 2030
Performance measure
Percentage of recycled content in our of plastic bottles used
Definition
This is determined by quantifying the metric tonnes of non-virgin plastic in the total volume of all plastic bottles used at each 
site or market reported through a plastics database.
Scope exception
–
Data preparation
We collate plastic material volume data from enterprise software, including SAP and other sources, for the total volume of 
plastics purchased. We collect recycled content data through quarterly supplier questionnaires and then consolidate and 
internally verify it. 
Limitation
Reporting relies on suppliers’ technical information and supporting supplementary information. 
Target
Ensure 100% of our plastics are designed to be widely recyclable (or reusable/compostable) by 2025
Performance measure
Percentage of recyclable (or reusable/compostable) plastic used
Definition
For fiscal 23, we are reporting our ‘technically recyclable’ number. This includes packaging that is technically possible 
to recycle, but does not take into account whether the collection, sorting and recycling of the package happens in practice, 
at scale and at viable cost.
Scope exception
–
Data preparation
Packaging material volume data is collated from enterprise software, including SAP (materials supplied) and other sources. 
It is then consolidated and internally verified, based on the best available information.
Limitation
Reporting relies on suppliers’ technical information and supporting supplementary information.
Target
Provide all of our local sourcing communities with agricultural skills and resources, building economic and environmental 
resilience (supporting 150,000 smallholder farmers)
Performance measure
Number of smallholder farmers in our supply chain supported by our smallholder farmer programme
Definition
We define a smallholder farmer as an individual or family farming an area of less than four hectares, for the primary 
markets in scope for this target. Our local sourcing communities are those where we engage directly with smallholder farmers, 
or indirectly through our suppliers. 
We define providing agricultural skills and inputs aimed at improving the methods and activities used by smallholder farmers 
to farm effectively and sustainably by providing training or providing or facilitating access to farm inputs such as certified 
seeds and mechanisation.
Building economic and environmental resilience involves improving smallholders’ financial awareness, their family income 
and/or their understanding of how to act in a climate-smart way.
Scope exception
Our work with smallholder farmers is currently focussed around sorghum value chains in five countries in Africa. For fiscal 23, 
we focussed efforts on Kenya. With this focus we have learned how to best deploy at scale.
Data preparation
Our sourcing teams and third-party partners track the number of smallholder farmers undergoing training and education 
or being provided with access to farm inputs both manually and directly into our new digital platform. The baseline year for 
our smallholder programmes is fiscal 22.
The performance measure is refreshed each year, rather than accumulated over consecutive years, to evidence evolution 
of the number of smallholder supported on a year-by-year basis.
Limitation
Monitoring is likely to evolve over time, because collecting data at smallholder-farm level is complex, with a heavy 
reliance on individuals, a lack of publicly available high-impact datasets and a lack of real-time data.
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Target
Develop regenerative agriculture pilot programmes in five key sourcing landscapes
Performance measure
Number of regenerative agriculture pilot programmes initiated
Definition
We define our key sourcing landscapes as locations from which we source our most material crops, in terms of volumes 
sourced, product dependency (e.g., agave for tequila) and contribution to our Scope 3 GHG footprint.
The programmes include:
•	On-the-ground programmes with farmers to test and integrate regenerative and low-carbon practices in crop 
production systems
•	On-farm measurements and data collection protocols to track improvements in soil health, soil carbon, biodiversity, 
water stewardship and farm profitability
•	Collaborative programmes with our suppliers, other commodity off-takers, expert agronomists, technology providers, 
NGOs or specialist organisations.
Scope exception
–
Data preparation
Data is consolidated for each pilot programme, tracking KPIs and reporting on improvements against key outcomes. 
The baseline year is fiscal 23. The baseline year for assessing the results of our first pilot programme, Guinness barley, 
is fiscal 23.
Limitation
–
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Reporting boundaries and methodologies
Reporting boundaries and methodologies for performance measures used within the ESG Reporting Index 
and that are not included in the Annual Report
Topic
Community investment figures
Performance measure
Community investment by focus area, investment type and region
Definition
Community investment includes contributions – for example, in the form of cash, in-kind donations, programme delivery 
costs – from Diageo plc. It includes contributions to charitable entities, non-branded responsible drinking programmes that 
benefit charities, and the delivery costs of our community programmes. We use the Business for Societal Impact principles 
to measure our community investment. 
Scope exception
We include community investment from all the markets where we operate. This community investment data includes 
specific voluntary engagement with charitable organisations or activities that extend beyond our core business activities. 
That means it does not include our investment towards our Society 2030: Spirit of Progress activities, which are included 
as business-as-usual costs.
Data preparation
Cash, in-kind donations, programme delivery costs and employee time contributions are recorded by local markets using 
our market reporting template.
Limitation
Reporting is based on investment data submitted by our Corporate Relations teams. It may not include investment gifted 
to charities from other functions, such as our Marketing function.
Topic
Sustainable supply chains 
Performance measure
Number of suppliers assessed via on-site assessments
Definition
The total number of suppliers that have been assessed (four-pillar ethical audit or equivalent) within the past three years 
divided by the total number of suppliers that are screened as high risk.
Scope exception
Those suppliers that are screened as low or medium risk are not in scope for on-site assessments.
Data preparation
The breakdown of our audit compliance data comes from what is held within the Sedex platform and audits are valid for 
three years; our data relates to the most recent audit that has occurred at a site. 
Limitation
This includes all audit data held in Sedex. We do have a small number of audits in other formats – for example, BSCI, 
Unilever Audits, Coca-Cola audits – which are accepted as part of AIM-Progress’s mutual recognition programme, but do not 
affect these figures.
Topic
Sustainable supply chains 
Performance measure
Total number of suppliers supported in corrective action plan implementation
Definition
Compliance is achieved by closing all major, critical and business critical non-compliances through a valid SMETA audit from 
the past three years (or equivalent audit standard). The total number of compliant suppliers is divided by the total number of 
high-risk suppliers in scope.
Scope exception
Those suppliers that are screened as low or medium risk are not in scope for on-site assessments.
Data preparation
The breakdown of our audit compliance data comes from what is held within the Sedex platform and audits are valid for 
three years; our data relates to the most recent audit that has occurred at a site. 
Limitation
This includes all audit data held in Sedex. We do have a small number of audits in other formats – for example, BSCI, Unilever 
Audits, Coca-Cola audits – which are accepted as part of AIM-Progress’s mutual recognition programme, but do not affect 
these figures.
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Topic
Environmental impact: Biodiversity
Performance measure
We track our effect on local biodiversity by measuring where operational sites we own, lease and manage are in, or adjacent 
to, protected areas and areas of high biodiversity value outside protected areas
Definition
We define adjacent as a distance to the boundary of a protected area of less than or equal to 1km. 
The protected area designations are identified using the Integrated Biodiversity Assessment Tool (IBAT) following the 
International Union for Conservation of Nature (IUCN) protected areas categories I–VI.
Key Biodiversity Areas (KBAs) are also identified using the IBAT platform and are ‘sites contributing significantly to the global 
persistence of biodiversity’, in terrestrial, freshwater and marine ecosystems. KBAs comprise an ‘umbrella’ set of internationally 
recognised priority sites for biodiversity that include Important Bird and Biodiversity Areas (IBAs) and Alliance for Zero 
Extinction (AZE) sites.
Scope exception
Sites where Diageo does not have operational control are excluded from reporting. 
From 2022, we changed the way that we report against this performance measure and now only report those sites ‘in’ or 
‘adjacent’ to protected areas and KBAs. We also no longer include Conservation International Biodiversity Hotspots because 
these are not part of the IBAT platform.
Data preparation
We update the classification data for our sites and protected area designations each year. 
Limitation
Not applicable. 
Topic
Environmental impact: Biodiversity
Performance measure
IUCN Red List species and national conservation list species with habitats in areas affected by operations
Definition
IUCN Red List species were identified using the IBAT. We report on the counts of IUCN Red List species in three categories – 
Critically Endangered, Endangered and Vulnerable – that are potentially found within a 50km radius of our operational sites. 
The potential presence of these species in the landscapes around our operations does not mean that they are present at 
our operational sites, or that we affect these species. The total species reported is the sum of species counts across all sites, 
so this number will include species that have been counted more than once due to proximity to multiple sites. 
Scope exception
Sites where Diageo does not have operational control are excluded from reporting.
From 2022, we changed the way that we report against this performance measure, to ensure consistency across sites. 
We have moved to using the IBAT platform ‘multi-site’ report, which is recommended for annual reporting against GRI 
standards. IBAT is the world’s most authoritative biodiversity data provider and enables corporate access to the most 
up-to-date biodiversity information. The total number of species in the IUCN Red List has increased since our last assessment, 
so this year’s figures are not directly comparable to previous years’. Where more granular information is available from 
site-specific surveys, it will be accounted for in management plans.
Data preparation
We update the location data for our sites and the potential overlap with IUCN Red List species each year.
Limitation
The IBAT approach is highly conservative to ensure that all potential at-risk species are considered. This means that the 
numbers reported will not necessarily reflect species actually present or affected by our operational sites, only those that may 
be potentially present within a 50km radius. The IBAT tool does not currently account for species habitat suitability, and our 
sites, particularly those situated in urban and industrial areas, are unlikely to host IUCN Red List species. IBAT is exploring how 
to better incorporate habitat suitability in future. 
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Topic
Environmental impacts: Effluents
Performance measure
Wastewater polluting power (BOD), total under direct control (tonnes)
Percentage reduction in wastewater polluting power (‘BOD’), total under direct control (tonnes) from the prior year
Definition
Much of the water used in brewing, distilling and beverage-packaging facilities is used for cleaning process equipment, and 
such water becomes polluted with product residues. The strength of this pollution in the wastewater discharged as effluent is 
expressed as BOD. BOD is a direct measure of the polluting strength of effluent, and quantifies the oxidisable organic matter 
present in the wastewater or effluent stream.
We measure and report the final BOD load discharge to the environment outside the site boundary that is directly treated 
and controlled and/or treated by third parties, consistent with international methods and literature describing the 
determination of BOD impacts.
The BOD load to the environment (thousands of tonnes) attributable to our owned and operated wastewater treatment 
facilities is covered by external independent assurance.
Scope exception
Wastewater/BOD discharged to environment inside the site boundary.
Data preparation
Data is reported at site level using the environmental management system.
•	The final BOD load to the environment is determined from the volume in cubic metres of site effluent multiplied by the 
BOD concentration in mg/l and is expressed as thousands of tonnes.
•	Effluent volume is either determined from an on-site flow meter or by calculating a ‘mass balance’ formula/ratio of effluent 
volume to water withdrawal.
•	In the limited instances where mass balance ratios are applied, these are validated through industry standard coefficients 
for wastewater volume for brewing, distilling and packaging operations.
•	The BOD concentration of the effluent is determined on either a composite sample or grab sample basis, depending on 
local testing equipment, from one of the following: 
– On/off-site BOD laboratory analysis 
– On/off-site chemical oxygen demand (COD) laboratory analysis and applying an industry (or site-specific) correlation 
coefficient to convert to BOD 
– Third-party/municipal treatment facility BOD data.
Limitation
Third-party/municipal treatment facilities are out of scope for external independent assurance.
Wastewater used for irrigation is excluded from reported BOD. 
Effluent volume is either determined from an on-site flow meter or by calculating a ‘mass balance’ formula/ratio of effluent 
volume to water withdrawal. In the limited instances where mass balance and ratios are applied, these are validated through 
industry standard coefficients for wastewater volume for brewing, distilling and packaging operations.
Topic
Food safety and quality
Performance measure
Packaging defects (ppm)
Definition
Packaging defects data is based on a 0.1% sampling for spirits and 0.025% for beers. Individual packs are inspected against 
a global finished product standard. 
Scope exception
Sites where Diageo does not have operational control are excluded from reporting.
Data preparation
Figures are aggregated globally and weighted based on production volume.
Limitation
Data is reported monthly and reviewed for accuracy and compliance. 
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Target
Food safety and quality
Performance measure
Distribution defects
Definition
Distribution defects data is based on a 1% sampling of goods received at the first shipped-to warehouse. Individual pallets are 
inspected against a global distribution quality standard. 
Figures are aggregated globally and weighted based on volume of product shipped.
Scope exception
Sites where Diageo does not have operational control are excluded from reporting.
Data preparation
The number of defects is recorded and reported monthly.
Limitation
Data is reported monthly and reviewed for accuracy and compliance.
Target
Food safety and quality
Performance measure
Quality incidents
Definition
Quality incidents are defined as an issue that has an impact on product quality with the potential to have a negative effect on 
our corporate or brand reputation or customer service. Clear criteria are in place to ensure consistent reporting. This metric is 
reported as the number of quality incidents for the reporting period.
Scope exception
Sites where Diageo does not have operational control are excluded from reporting.
Reporting period
Monthly.
Data preparation
The number of defects is recorded and reported monthly.
Limitation
Data is reported monthly and reviewed for accuracy and compliance.
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Cautionary statement regarding ESG-related data, 
metrics and forward-looking statements
This document contains a number of forward-looking statements 
with respect to Diageo’s Society 2030: Spirit of Progress goals, 
commitments, ambitions, and the methodologies we use to assess 
our progress in relation to these (‘ESG-related forward-looking 
statements’). Forward-looking statements can be identified by the 
fact that they do not relate only to historical or current facts and may 
generally, but not always, be identified by the use of words such 
as “’will”, “anticipates”, “should”, “could”, “would”, “targets”, “aims”, 
“may”, “expects”, “intends” or similar expressions. In particular, 
forward-looking statements include all statements that express 
forecasts, expectations, plans, outlook, objectives and projections 
with respect to future matters. Forward-looking statements can be 
made in writing but may also be made verbally by directors, officers, 
and employees of Diageo (including during presentations) in 
connection with this document. Forward-looking statements involve 
risk and uncertainty because they relate to events and depend on 
circumstances that will occur in the future.
In preparing the ESG-related information contained in this document, 
Diageo has made a number of key judgements, estimations and 
assumptions, and the processes and issues involved are complex. 
The ESG and climate data, models and methodologies used are 
often relatively new, are rapidly evolving and are not of the same 
standard as those available in the context of other financial 
information, nor are they subject to the same or equivalent disclosure 
standards, historical reference points, benchmarks, market consensus 
or globally accepted accounting principles. In particular, it is not 
possible to rely on historical data as a strong indicator of future 
trajectories in the case of climate change and its evolution (as 
discussed in more detail below, with respect to data availability, 
accuracy, quality, verifiability and data gaps). Outputs of models, 
processed data and methodologies are also likely to be affected by 
underlying data quality, which can be hard to assess and we expect 
industry guidance, market practice, and regulations in this field to 
continue to change. There are also challenges faced in relation 
to the ability to access data on a timely basis and the lack of 
consistency and comparability between data that is available. 
This means the ESG-related forward-looking statements and ESG 
metrics discussed in this document carry an additional degree of 
inherent risk and uncertainty, and as a result, our actual results and 
developments could differ materially from those expressed or implied 
by the ESG-related forward-looking statements in this document.
In light of the uncertainty as to the nature of future policy and market 
responses to climate change, including between regions, and the 
effectiveness of any such responses, Diageo may have to re-evaluate 
its progress and evolve its approach towards its ESG ambitions, 
commitments and targets in the future, update the methodologies 
it uses or alter its approach to ESG and climate analysis and may be 
required to amend, update and recalculate its ESG disclosures and 
assessments in the future, as market practice and data quality and 
availability develops rapidly. 
There are a number of factors that could cause actual results and 
developments to differ materially from those expressed or implied 
by the ESG-related forward-looking statements in this document, 
including factors that are outside Diageo’s control, which include 
(but are not limited to):
a.	 the inherent uncertainty of climate change projections due to the 
inchoate and complex nature of climate metrics and the climate 
scenarios employed in related to such metrics, which have 
limitations that are sensitive to key assumptions and parameters 
that are themselves subject to some uncertainty, and cannot fully 
capture all of the potential effects of climate, policy and 
technology driven outcomes; 
b.	 changes in the ESG regulatory landscape, including government 
approaches and regulatory treatment in relation to ESG 
disclosures and reporting requirements, in particular with respect 
to U.S. and European Union disclosure standards and any actual 
or potential variations in requirements between the U.S., the 
European Union and any other applicable regulatory regimes, 
as well as other developments in response to the current lack of 
a single standardised regulatory approach to reporting ESG data 
across all sectors and markets; 
c.	 data availability, accuracy, quality, verifiability and data gaps, 
which limit our disclosure and could cause unexpected 
fluctuations year on year, and/or differences between the quality 
of the data obtained and could result in revisions to reported data 
going forward, meaning that such data may not be reconcilable 
or comparable year-on year; 
d.	 continued development of the methodologies Diageo uses to 
assess and set its ESG-related targets over time in line with market 
practice, regulation and/or developments in science, which could 
result in revisions to reported data and lack of reconcilability or 
comparability; and 
e.	 the effectiveness of global actions in transitioning to net zero and 
in managing relevant ESG risks, including in particular climate, 
nature related and human rights risks, the success or failure of 
which will affect our ability to achieve our Society 2030: Spirit of 
Progress goals, which may result in our failure to achieve any 
of the expected benefits of our strategic priorities.
More details of potential risks and uncertainties affecting Diageo are 
described in our filings with the London Stock Exchange and the US 
Securities and Exchange Commission, including in our Annual Report 
on Form 20-F for the year ended 30 June 2023.
Any forward-looking statements made by or on behalf of Diageo 
speak only as of the date they are made. Diageo expressly disclaims 
any obligation or undertaking to publicly revise or update these ESG 
forward-looking statements, other than as required by applicable law.
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Diageo plc
16 Great Marlborough Street
London
W1F 7HS
United Kingdom
T: +44 (0) 20 7947 9100
www.diageo.com
Registered in England
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