Better Health for All
-30
Diageo's principal goods are alcoholic beverages, which have significant negative health consequences, leading to a -90 for health_impact_core. However, the company demonstrates outstanding risk transparency (-20) through its DRINKiQ platform, providing facts about alcohol, its effects, a WHO-aligned drinking self-assessment tool, and a drinks calculator.
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The company addresses significant health-harming externalities (-70) like harmful drinking and drink driving through substantial remediation efforts, including the 'Wrong Side of the Road' digital experience, and contributes positively to health through its WaterAid partnership and Water of Life program, which has impacted over 4 million people with clean water and sanitation.
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Diageo exhibits a comprehensive focus on preventative health measures (20), with its strategy centered on promoting moderation and responsible drinking through various campaigns and non-alcoholic alternatives like Ritual Zero Proof
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and Seedlip.
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During the COVID-19 crisis in May 2021, Diageo made significant contributions (20) by pledging $6 million to India's public healthcare, setting up oxygen plants in 21 hospitals and mini-hospitals in 15 districts.
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The company shows growing recognition of mental health needs (-70), with DRINKiQ addressing the effects of drinking on the mind
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and a partnership encouraging older men's well-being.
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Diageo's healthcare education initiatives are comprehensive (20), with the SMASHED program reaching 1.8 million young people
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and targeting 10 million by 2030 on underage drinking, alongside an ambition to reach 1 billion people with moderation messages by 2030.
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Furthermore, the company implements industry-leading addiction mitigation efforts (-40), including extensive education programs and offering non-alcoholic brands.
Fair Money & Economic Opportunity
0
Diageo PLC is a beverage alcohol company and does not operate as a financial institution. Consequently, KPIs related to consumer financial products and services, such as underserved client share, pricing fairness, exploitative fee exposure, data accessibility, fair lending compliance, debt burden ratio, geographic inclusion, and product simplicity, are not applicable to its core business model and score 0. While the company engages in initiatives promoting economic opportunity, including a micro-enterprise initiative for smallholder women farmers
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, free hospitality training with an 89% job placement rate
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, and significant endowments to HBCUs and MSIs
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, the provided evidence does not offer the specific quantitative data required by the rubric for KPIs like inclusion initiatives (share of loan/insurance book), wealth building outcomes (percentage of users achieving specific financial gains), profit reinvestment (percentage of pre-tax profit), or financial literacy initiatives (explicit financial literacy programs).
Fair Pay & Worker Respect
10
Diageo reported 4 substantiated discrimination allegations and 21 discrimination non-compliances within its supply chain in fiscal 24.
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The company's Total Recordable Accident Frequency Rate (TRAFR) was 1.97 accidents per 1,000 workers in fiscal 24, which translates to 0.197 per 200,000 hours.
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In 2024, the employee engagement index was 81%.
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The voluntary employee turnover rate was 9% in fiscal 24.
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Collective bargaining agreements covered 44% of employees in fiscal 24.
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In early 2023, workers at the Leven plant in Scotland went on strike over a pay dispute, with Unite the Union exploring legal action regarding claims of unlawful inducement to sign new contracts.
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Fair Trade & Ethical Sourcing
-40
High-risk suppliers are subject to independent third-party ethical audits every three years.
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In fiscal year 23, 77% of 443 suppliers were independently audited during the last three years.
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In fiscal year 23, one case related to Child/Forced Labour was raised via the SpeakUp whistleblowing line.
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In fiscal year 24, no slavery, servitude, forced labour, or compulsory labour issues were raised via SpeakUp.
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Additionally, in fiscal year 23, 23 non-compliance issues related to 'Employment is freely chosen' and 18 related to 'children and young workers' were identified through ethical audits.
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Over 77% of all non-compliance issues raised through ethical audits in fiscal year 24 were closed, impacting 66,932 workers.
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Diageo prohibits debt bondage and unacceptable financial costs forced upon workers, and does not employ anyone under the age of 16.
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Child labour awareness training was piloted for smallholder farmers in Kenya in May 2023
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and expanded to 4,000 farmers in Kenya and 11,490 in Ghana in May/June 2024.
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Honest & Fair Business
0
Diageo operates a global, multi-channel, confidential SpeakUp whistleblowing mechanism for employees, business partners, and communities, available in over 20 languages.
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Annual training is provided for Brand Promoters.
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In the year ending June 30, 2024, 759 allegations were reported, with a 34% substantiation rate, leading to 70 individuals exiting the business due to confirmed breaches.
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Confirmed breaches are actioned on immediately.
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Kind to Animals
10
Diageo's CSR policy, effective April 1, 2021, designates "protection of flora and fauna" and "conservation of natural resources" as focus areas
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, committing at least 2% of average net profits to CSR activities.
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The company has implemented regenerative agriculture on 1,400 hectares in Ireland, resulting in increased pollinators and bird life.
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Diageo India is engaged in the conservation of the critically endangered Great Indian Bustard through habitat restoration.
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The company invested £550,000 in a weir on the River Dullan to improve spawning for trout and salmon
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and committed £450,000 to trial innovations for biodiversity on African farms.
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A regenerative agriculture program supports 5,000 farmers in India.
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Diageo is also actively engaged in Science Based Targets for Nature
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and has 16 production sites associated with RAMSAR wetlands.
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No War, No Weapons
-10
Diageo's core business is alcoholic beverages, and the company does not derive any revenue from arms or defense contracts.
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However, it engages in minor defense-adjacent services, such as assembling 12,000 care packages for American troops in 2019
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and a $10,000 donation to iPads for Soldiers in 2012.
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The company's R&D investments are focused on beverage production, with no involvement in dual-use technologies.
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Diageo states it does not operate in North Korea or Sudan
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and maintained limited business with third parties in South Sudan following its independence while ensuring compliance with U.S. sanctions, indicating no sales to embargoed regimes.
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Diageo has no known investments or partnerships in conflict zones, implying zero procurement from such areas and no defense assets to divest.
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Specific investments in peacebuilding or disarmament initiatives are not prominently featured in public disclosures.
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Diageo is an active participant in the UN Global Compact, regularly submitting Communications on Progress related to human rights and implementing human rights due diligence.
9
Planet-Friendly Business
-30
Diageo reported 55 incidents of non-compliance with environmental regulations
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and 193 spills in the reporting year.
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Total Scope 1, 2, and 3 emissions were 5.93 million tCO2e in fiscal 2024,
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with Scope 1 & 2 emissions decreasing by 10.7%
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and Scope 3 by 5%
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from the prior year. Carbon reduction targets are validated by the Science Based Targets initiative (SBTi) to a 1.5°C pathway.
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The company aims for net-zero carbon emissions in its direct operations by 2030
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and across its total value chain by 2050,
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with published interim milestones.
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Diageo reports alignment with Task Force on Climate-related Financial Disclosures (TCFD) recommendations
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and conducts scenario analysis.
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In fiscal 2024, 50.3% of total energy consumption was from renewable sources,
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and 93.7% of electricity was from renewables.
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The waste diversion rate was 99.96% in fiscal 2024.
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Water use was 283 m³ per $1 million revenue, though 54.26% of total water consumption was from water-stressed areas.
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Additionally, 42% of packaging materials were recycled input materials.
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Diageo has a commitment to achieve no deforestation and no conversion in its supply chains by the end of 2025,
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with almost all paper and board packaging meeting certified or recycled standards.
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Respect for Cultures & Communities
-20
Diageo has established 3 formal partnerships with community groups, including Refine Collective
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, Ghetto Gastro
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, and Equator
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. The company has no reported cultural appropriation incidents. Diageo Ireland invested €395,000 in cultural initiatives
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and €125,000 to feature local business stories
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. Additionally, Diageo announced a $20 million Community Fund to support social justice in the U.S.
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. Its Programa Origens in Brazil involves over 40 participants for Black and Indigenous talent development
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. Diageo North America has achieved a score of 100 on the Human Rights Campaign Foundation's Corporate Equality Index for 15 consecutive years
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. The company also partnered with Hispanic street food vendors and artists to celebrate Hispanic Heritage Month
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.
Safe & Smart Tech
-10
A data breach at a third-party service provider in March 2023 likely exposed personal details of approximately 470,000 members of the Universities Superannuation Scheme, including name, birthdate, National Insurance Number, and USS member number.
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Diageo alerted affected pension fund users and offered a 12-month Experian identity theft service subscription.
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Diageo itself did not identify any material cyber security threats to its business strategy, operations, or financial condition during fiscal 2024.
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The company provides annual cybersecurity training to all employees, with more frequent targeted training for specific functions, and mandatory annual training on the Code of Business Conduct for over 24,000 eligible employees.
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Diageo's Chief Business Integrity Officer presented on responsible AI governance and ethical AI practices in 2024.
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The company has a global policy addressing data privacy and personal information, and a new Digital Marketing Standard with clearer requirements on consumer data compliance.
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Users can unsubscribe from marketing communications.
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Users have rights and choices regarding their personal information.
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No documented incidents of unauthorized data use by Diageo were found.
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Diageo has a cyber security risk management program aligned to industry best practices.
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and its Security Operations Centre uses advanced technology to proactively detect and block attempted attacks.
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Diageo performs secure assurance and compliance checks on its cloud-hosted IT service providers.
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Zero Waste & Sustainable Products
-10
Diageo achieved zero waste to landfill in its direct operations in fiscal 2023 and maintained this in fiscal 2024.
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In fiscal 2024, 98% of its packaging was recyclable, reusable, or compostable, with a target to reach 100% by 2030.
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The company used 42% recycled content in its packaging materials in fiscal 2024, and increased recycled content in plastic bottles from 7% in fiscal 2023 to 22% in fiscal 2024.
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Diageo aims to increase recycled content in all packaging to 60% by 2030.
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Circularity measures are central to Diageo's approach, including initiatives like the ecoSPIRITS solution in Asia, the UK, and Ireland, and exploring glass coating technology to extend bottle lifecycles. Waste reduction initiatives include the removal of mono-cartons, saving an estimated 10,000 tonnes of paper annually, and trials of paper and aluminum bottles.
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,
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For hazardous waste, 249 tonnes were sent to landfill globally in fiscal 2024, while 5,903 tonnes were reused or recycled.
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Diageo reported 55 incidents of non-compliance related to environmental regulations, licenses, and permit requirements in fiscal 2024.
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The company's "Partnering with Suppliers Standard" includes minimum environmental compliance requirements and encourages waste reduction efforts, with procurement teams including a "zero waste to landfill" clause in contracts for high-risk handlers.
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Diageo also includes recycling and sustainability symbols on its product labels and packaging.
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