Diageo India, an alcohol-beverage company, has released its third annual ESG Reporting Index 2024, highlighting its progress in its “Spirit of Progress” ESG action plan. This includes promoting positive drinking, inclusion, diversity, and sustainability.
The company is on track to achieve 100% renewable energy status by 2030, with increased in-house solar capacity and 98.6% renewable energy use since 2020.
Highlights from Diageo India’s ESG Reporting Index 2024:
Pioneering Grain-to-Glass Sustainability: The company aims to establish a robust supply chain by promoting water stewardship and reducing carbon emissions to support its operations and help communities adapt to climate change.
Preserving water for life: The company achieved significant progress in FY24, exceeding its water replenishment targets by 25%, three years ahead of schedule, as part of its “Spirit of Progress” ESG action plan, Diageo said in its ESG report.
The Diageo India distillery in Alwar, Rajasthan, is certified by the Alliance for Water Stewardship and Sustainalytics’ ESG risk rating has improved from medium to low risk.
The company prioritizes water stewardship, especially in water-stressed areas, through operational effectiveness enhancement, community projects, replenishment programs, and teamwork.
Since the 2020 base year, the company has enhanced its distillation water use efficiency by 48% and packaging efficiency by 31%.
Diageo India has built a water replenishment capacity of over 9,000 Cu.M. and restored over 1 million cubic meters in three years, achieving a 25% increase in water replenishment target. Collaborations with stakeholders, NGOs, and the government improved water availability and quality.
The company has improved lives through its WASH program by building 264 sanitation facilities and providing over 13,000 liters of clean drinking water per hour in villages across Maharashtra, Uttar Pradesh, Odisha, and Rajasthan. It also became the first Asian distillery to receive the Alliance for Water Stewardship (AWS) certification.
Low carbon initiatives: Diageo India is aiming for a low-carbon future, aligning with the UN’s Sustainable Development Goals. The company has replaced coal fossil fuels with biomass renewable-fueled boilers since 2022, reduced greenhouse gas emissions by 87% since 2020.
Diageo India has achieved 98.6% renewable energy use status in direct operations since 2020, aiming for 100% renewable energy by 2030.
The company’s “Signature Packaged Drinking Water” brand is involved in a mangrove regeneration project in Puri, Odisha, planting 31,500 seedlings and over 1 lakh trees to promote climate resilience.
Diageo has planted over 2 lakh trees in Alwar as part of its afforestation campaign under the Trees Outside Forest in Rajasthan (TOFR) program. The company’s primary objectives include reducing waste, collaborating with farmers to restore landscapes, and fostering sustainable growth methods.
Additionally, the company is promoting regenerative agriculture techniques and improving farm management practices through collaborations with agronomic partners and suppliers.
This includes empowering smallholder women farmers in Nashik, executing a regenerative agriculture program in 60 villages in Ambala (Haryana) and Ludhiana (Punjab), and initiating a three-year pilot project with rice farmers in Nizamabad.
Supply chain and packaging:
Diageo India is actively collaborating with suppliers to reduce carbon emissions and promote the adoption of new technologies and supply chain best practices.
The business has been continuously improving its packaging, focusing on lightweighting, recycling materials, and cross-format recyclability to reduce its carbon footprint.
The company achieved a 100% recycling rate in materials used, with 55% of packaging made from recycled content, demonstrating its commitment to reducing waste through circular economy initiatives. The company has implemented a 95% reduction in mono-carton products, replaced them with recyclable PET containers, and collected all plastic waste as part of its Extended Producer Responsibility program.
CSR:
Diageo India is promoting responsible drinking by addressing negative effects of alcohol consumption through targeted interventions. In FY24, over 1,91,861 young people participated in the Act Smart India initiative. The company also launched an anti-drink driving education program and a website to encourage moderation, aiming to educate one million customers by 2030.
Diageo India has implemented various initiatives to improve job and income prospects for marginalized communities. The “Learning for Life” initiative has trained 2,060 students in the hospitality industry, with women making up over half of the beneficiaries. Diageo Bar Academy has trained over 9,400 individuals. The company has also won the bid to manage Bengaluru’s Women’s Premier League team, and was named a Gold Employer for LGBT+ inclusion by the India Workplace Equality Index.
DEI:
The company is actively promoting inclusion and diversity through industry-leading policies and practices, fostering inclusivity in its operations, suppliers, partners, and local communities.
Diageo India has made significant progress in gender representation, with 50% of the Executive Committee being female. The company aims to increase women’s representation to 33%, establishes women’s and LGBTQIA+ employee resource groups, and fosters an inclusive culture through Project Saksham.
Ethical business practices and board composition:
The company’s goal to lead the Indian CPG sector in ESG and enterprise value relies on governance, strategic thinking, and understanding of opportunities and risks.
The Board, consisting of experienced professionals, includes independent directors in Audit, Risk Management, Nomination and Remuneration, and CSR and ESG committees. The Environmental, Social, and Governance Committee and Corporate Social Responsibility Committee oversee ESG performance, while cross-functional teams drive ESG governance.
Overall, the Reporting Index compares Diageo India’s performance to the UN Sustainable Development Goals (SDGs) and is created in line with the widely recognized GRI Standards Index. As part of the framework established by the Sustainability Accounting Standards Board (SASB), the index offers extra sector-specific disclosures.
Hina Nagarajan, Managing Director & CEO, Diageo India said, “As we release our 2024 ESG Reporting Index, I’m proud of the remarkable progress we’ve made under our ‘Spirit of Progress’ action plan. We are committed to leading the way in grain-to-glass sustainability, fostering positive drinking, and championing inclusion and diversity throughout our operations and communities, with an unwavering allegiance to doing business with integrity. We will continue to lead with purpose, leveraging our scale and working collaboratively with partners to drive meaningful impact and sustainable growth.”
