Diageo’s approach to water – supporting business growth

Diageo’s Approach to Water – Supporting Business Growth Water Security and the Global Development Challenge Conference, Oxford University 17 April 2012 Gerry O’Hagan Global Technical Director

Water footprinting – key areas of impact Water Use

Water Pollution 3

Delivering against 2015 environmental targets Water wasted at stress loca1ons

Water efficiency

50% 30% 15.8% 2015 target improvement vs.

F07 baseline

9.0%

Progress to date

2015 target reduction vs. F07 baseline

Waste water 60%

(25.6)% 2015 target reduction vs. F07 baseline

Progress to date

Progress to date

Operations – Water in the Agricultural Supply Chain • Local sorghum supply chain in Cameroon • Less water to grow and process • More efficient and productive supply chain

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Water improvements – focusing on water stressed sites EABL Tusker Brewery, Kenya

GGBL Kumasi Brewery, Ghana

• Water recovery

• Pasteuriser replacement

• Cost £200,000

• Cost £3 million

• 6 month payback

• 7 year payback

New technology – a new era for sustainable distilling Roseisle, Scotland • 13,000 tonnes of carbon avoided per year • 100% reduction in polluting power of effluent

St Croix, US Virgin Islands • 15,000 tonnes of carbon avoided per year • 90% of process wastewater recycled • 100% reduction in polluting power of effluent Cameronbridge, Scotland • Planned 56,000 tonnes of carbon avoided per year • 30% of process wastewater recycled • 100% reduction in polluting power of effluent 7

Community Involvement - Diageo’s Water of Life Programme • 170 projects • 16 countries • 5 million people

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Collective Action - Collaboration • • • •

Water Business Imperative Roundtables in Africa Beverage Industry Environment Roundtable CDP Water Disclosure Project UN CEO Water Mandate

The challenge for business • • • • •

Adopting a holistic approach Decoupling water impact from business growth Innovation to drive change New ways of working with new partners Collaboration – common issues, collective solutions