Drink to that: Diageo slashes GHG emissions in half

14 Aug 2020 --- Diageo, producer of Johnnie Walker, Smirnoff and Guinness, has met its 2020 greenhouse gas (GHG) emissions targets, delivering on its commitment to reduce absolute GHG emissions by 50 percent. The British multinational beverage alcohol company also reduced total value chain emissions by over a third, trumping its original 30 percent target. However, Diageo found reducing the overall weight of its packaging by 15 percent more challenging, falling slightly short with an 11 percent reduction.

Originally set in 2008, and refreshed in 2015, the 2020 Sustainability and Responsibility Goals were “among the most ambitious and stretching in the industry,” Diageo highlights. The company claims to have been among the first to set GHG reduction targets in line with the principles of the Science Based Targets initiative, and an early adopter of absolute, rather than relative, GHG reduction targets.

The 2020 targets were selected to align with the UN’s Sustainable Development Goals and designed to cover Diageo’s three main focus areas: reducing environmental impact, building thriving communities and promoting positive drinking. Diageo’s sustainability achievements include:

• Cutting GHG emissions from direct operations by 509,000 metric tons, delivering on its commitment to reduce absolute emissions by 50 percent (against a 2007 baseline).
• Reducing emissions by over a third (33.7%) across its total value chain, going beyond its original 30 percent target (against a 2007 baseline).
• In water-stressed areas, replenished 100 percent of the water used in its final product.
• Ensured that over 99.5 percent of its packaging is recyclable and achieved 45 percent recycled content in its packaging.
• Achieved zero waste to landfill in all operational sites and offices.
• Supported more than 250,000 people through its projects focused on clean water, sanitation and hygiene (WASH) in 2020.

Water stewardship
In 2019, Diageo was appointed a “Global Goals Business Avenger” as the business champion for UN Sustainable Development Goal 6: “Ensure availability and sustainable management of water and sanitation for all.” This financial year, Diageo has replenished 1,400,000 m3 of water, the equivalent of 560 Olympic sized swimming pools, in water-stressed areas.

In July, Diageo unveiled the “world’s first” 100 percent plastic-free, paper-based spirit bottle.Despite this significant progress, however, Diageo did not achieve all its goals. As reported in 2019, it has not met the full improvement it wanted in the quality of wastewater it discharges, with 90 percent of its operational sites meeting the stretching target (noting it remains within consent levels granted by local regulators).

However, Diageo did deliver a 46.3 percent improvement in water use efficiency against a target of 50 percent, reportedly missing the goal due to delayed water recycling projects in Africa and lower packaged volumes in some markets both as a direct result of COVID-19 impacts.

Weight reduction challenge
Diageo also found reducing the overall weight of its packaging by 15 percent more challenging than expected, still delivering an 11 percent reduction. The company notes that the starting point on lightweight glass made the challenge tough. Having delivered the goal of 80 percent of raw materials sourced locally in Africa two years early, it slipped to 79 percent over the last quarter of the year, as a direct result of COVID-19 volume impacts.

In July, Diageo unveiled the “world’s first” 100 percent plastic-free, paper-based spirit bottle. The Scotch Whisky brand Johnnie Walker bottle consists entirely of sustainably sourced wood and will debut in early 2021. The launch comes as Diageo announces a new partnership with venture management specialist Pilot Lite to launch Pulpex, an environmentally sustainable packaging technology company.

In June, Diageo North America launched 100 percent recycled PET bottles for its Seagram's 7 Crown American whiskey brand across all formats (1.75 L, 750 ml, 375 ml and 200 ml). Diageo expects to achieve a reduction in virgin plastic of almost 1000 metric tons annually – the equivalent to removing 100 million 500 ml plastic bottles from shelves. The new bottles will be available across the Seagram's 7 Crown range in the US from the end of June 2020, alongside a variety of the brand's glass bottle formats.

“As we close our 2020 targets, we are incredibly proud of the progress we have made and grateful to our employees and selected partners who have helped us deliver transformational progress. We have been agile and moved quickly to adapt to the global changes around us. We are excited about the decade of action ahead and will continue to lead the way,” comments Ewan Andrew, Chief Sustainability Officer at Diageo.

In the coming months, the company will also be announcing a new set of targets to further support the delivery of the UN Sustainable Development Goals over the critical decade to 2030.

By Joshua Poole