KPMG with Diageo

Sustainability Award

MCA Awards Finalist 2024Grain-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.

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