DIAGEO I PROFILE

A second strand of Cohort 2 investigates a circular business model for reuse and refill archetypes, with an emphasis on consumer-focused sales. This concept requires both containers adapted to a number of reuse/refill cycles, plus an innovative scheme to engage customers and ensure their participation.

Additional challenges being addressed in Cohort 2 concern the implementation of decoration techniques on glass bottles which do not hinder the sustainability credentials of the glass. Diageo is also exploring solutions to optimise glass bottles and other container formats with the associated packaging for shipping. The standard 6- and 12-pack formats were

Diageo’s pioneering grain-to-glass Sustainability Targets for 2030 compel the company to:

• Become sustainable by design

• Preserve water for life

• Accelerate to a low carbon world designed for bulk palletised loads, but alternate packaging options could reduce waste.

Sustainable partnership

Further evidence of Diageo’s commitment to sustainable business was the recent announcement of a hydrogen-powered furnace together with Encirc to change the face of the UK glass manufacturing industry. This partnership aims to create the world’s first net zero glass bottles at scale by 2030. Encirc will build a new furnace at its Elton plant, Cheshire, that will use an energy mix of green electricity and low carbon hydrogen. It is expected that carbon capture technology will deal with the remaining emissions by 2030.

“We are really excited to be a part of this world leading announcement,” said Ewan Andrew, President, Global Supply & Procurement and Chief Sustainability Officer at Diageo. “This forms part of our commitment to halve our Scope 3 carbon emissions by 2030. We look forward to a world where people can enjoy their favourite drinks from zero carbon glass bottles.”

The use of the zero-carbon furnace will contribute towards Diageo’s commitments in its ESG action plan ‘Society 2030: Spirit of Progress’ to reduce emissions across its supply chain by 2030. Under this 10-year ESG action plan, Diageo is working towards creating a more inclusive and sustainable world.

The multi-strand ESG plan includes projects to promote a positive drinking culture and champion inclusion and diversity at every level of the business. Society 2030 also features Diageo’s pioneering grain-to-glass sustainability work with three major goals.

Alongside these assorted enviromental projects, growth continues. At the start of 2023, Diageo reached an agreement to acquire Don Papa Rum, a super-premium, dark rum from the Philippines. The initial consideration was €260 million, with a second possible con sideration of up to €177.5 million through to 2028 subject to performance, reflecting Don Papa Rum’s current growth potential.

Diageo remains committed to its position as a global leader in the premium drinks sector, leadership in terms of both portfolio size and driving the sustainable agenda within the industry.

“Our people are engaged and proud of Diageo,” concluded Mr Ferrán in the company’s 2022 annual report. “We continue to invest for the future to sustain the momentum in our brands and deliver a positive impact on society. We have consistently shown resilience in the face of volatility in recent years and proven our ability to emerge stronger in these circumstances.”