Diageo Launches Blueprint to Manage Its Water

The blueprint outlines how the drinks group will protect and manage its water resources globally as it expands in emerging markets

Drinks giant Diageo has revealed ambitious plans to slash its water use over the next five years, admitting that a third of the drinks it now sells are produced in water-stressed areas.

The company, which is famous for producing iconic drinks brands such as Guinness, Smirnoff and Johnnie Walker, today unveiled a Water Stewardship Strategy as part of its wider 2020 Sustainability and Responsibility plan.

The strategy sets a target to reduce water use through a 50 per cent improvement in water efficiency by the end of the decade and commits to ensuring 100 per cent of waste water from its operations is returned to the environment safely.

Significantly, the company said the strategy "extends targets to [the] broader supply chain for first time".

In addition to the headline targets, the company said it would support community projects in water-stressed areas where Diageo has production sites and would provide suppliers with the tools they need to enhance their water efficiency.

It also said it would "replenish water-stressed areas with the equivalent amount of water used in our final products which have been made in water-stressed areas, through projects such as reforestation, wetland recovery, and improved farming techniques".

"As Diageo's footprint has expanded, particularly in emerging markets, I firmly believe that managing water responsibly will be core to supporting the future growth of our business," said Ivan Menezes, chief executive of Diageo, in a statement. "Looking to the future, we recognise that we have a responsibility to strengthen our commitment and enhance our programmes if we are to make an even more meaningful impact. Through our new Water Blueprint we will focus on our broader supply chain, drive greater innovation and adopt new ways of working with new partners."

He added that the programme would see the company make "a real difference to the environment, economy and communities in so many countries where we operate".

Diageo is planning to build on existing efforts to enhance water efficiency across its operations. However, meeting the 50 per cent target is likely to require a sizeable investment in the company's water infrastructure. Since 2008, the company has removed six billion litres of water from the production of Diageo brands globally, but this translates into a water efficiency improvement of just 20 per cent, meaning billions more litres will have to be saved to meet the new target.

Source: Business Green

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Taxonomy

• Water Supply
• Water Management
• Governance & Planning