Sustainability Award
Grain-to-glass sustainability is integral to Diageo’s strategy. As part of this ambition, the company wanted to take human-rights management beyond its Tier 1 suppliers; and embed zero waste to landfill (ZWtL) practices into its supply chain for the first time.
KPMG’s sustainability experts worked with Diageo to analyse human-rights issues further down the supply chain; and encourage suppliers to embrace ZWtL. Our multi-phase programme comprised:
1. Stakeholder engagement
- To develop a clear picture of Diageo’s current supply chain, and gather internal and external stakeholders’ views and insights.
2. Human Rights assessment, prioritisation and implementation
- A risk assessment to methodically identify the salient human-rights issues in the supply chain
- A prioritisation strategy based on the UN Guiding Principles on Business and Human Rights (UNGPs)
- A grievance and remediation process and governance structure for addressing human rights issues in the supply chain
- A human-rights supplier training programme
The human rights strand of the project identified 55 salient issues across 15 procurement categories – enabling Diageo to focus its efforts for maximum impact.
3. ZWtL assessment, prioritisation and implementation
- A global assessment of the potential carbon-saving opportunities from waste reduction in Diageo’s supply chain
- A robust definition of supply chain ZWtL
- A global implementation plan for the ZWtL programme, tailored to the needs of different procurement categories and suppliers
Our supply chain ZWtL work covered more than a third of Diageo’s multi-billion-dollar annual spend. It has the potential to remove 183 million kg of carbon from the firm’s supply chain.
Sustainability is a long-term goal: the true impact of our programme will be felt in 5-10 years’ time. But we’ve already helped Diageo make significant progress towards its ambitions.
View the KPMG profile in the MCA Members Directory.