Diageo India is well known for its premium alcohol beverage brands. Besides offering high quality products in the Indian market, the company also has a steadfast commitment to social and environmental causes. This interview sheds light on their comprehensive ESG program Society 2030 along with other initiatives for conserving water, reducing plastic usage as well as their efforts towards collection and recycling. The discussion touches upon their recent initiatives that include mangrove plantations in Odisha; agricultural restoration projects in Punjab & Haryana; Learning for Life program and their extensive campaign to promote positive drinking.
Diageo India is also very close to achieving their 2026 target of attaining a zero carbon status. They are working with their suppliers to ensure responsible sourcing and lowering supply chain emissions. Being socially and environmentally responsible has not only created a positive impact on the society and communities they work with but also enhanced customer perception and market standing for Diageo India.
In this in-depth interview with TheCSRUniverse, Ruchira Jaitly, Executive Vice President and Prestige Portfolio Head, Diageo India takes us through multiple facets of the company’s CSR and ESG strategies and gives a glimpse of their vision for the future.
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Q. Diageo India has undertaken two major plantation and agricultural projects this year- the Signature Mangroves Regeneration Project in Odisha and the Regenerative Agricultural Program in Punjab and Haryana. How were these programs selected and what are the expected outcomes from them?
A. We are proud to announce the Signature Mangrove Regeneration project in Odisha, which was born out of our desire to do good for nature and local communities. The project was the result of in-depth research and analysis. We have learned through our sources that mangroves in Odisha are declining at an alarming rate due to human activities and natural disasters. In addition to preventing erosion, flooding, and carbon emissions, mangroves play a significant role in preventing climate change.
It is our goal to improve coastal stability, improve biodiversity, and provide more livelihood opportunities to communities through this project. It’s a tremendous loss as we have lost over 50% of the world’s mangrove cover in the last 50 years. In the initial stages, the regeneration efforts will be spread out across 61 acres in 5 villages near Puri, Odisha, over a period of 3 years. We have always been passionate about our contribution to nature and society as a whole and through this project, we aim to create a positive impact on our planet and our people.
Q. Tell us a little about Diageo India’s vision of Society 2030- when was this conceptualized and what are the main components of this vision?
A. Our ‘Society 2030: Spirit of Progress’ is a 10-year ESG plan. It reflects upon the most material issues affecting our company, our people, our brands, our suppliers and our communities. Our strategic priorities are to promote positive drinking, champion inclusion and diversity, and pioneer grain-to-glass sustainability, all underpinned by doing business the right way. This is how we continue to celebrate life, every day, everywhere. As the head of one of the India’s largest beverage alcohol producers, I believe that we are ambassadors of our industry and we aim to be the best we can - at work, at home, with friends, and in the communities we serve.
We’ve made progress across our three pillars of Society 2030: Spirit of progress plan. Under the first pillar of pioneering grain-to-glass sustainability, we focus on ensuring that people, suppliers, communities, customers, consumers and society thrive as a result of our business by:
- Preserving water for life: Diageo India is working to replenish more water than it uses in the water-stressed sites across its operating locations in India through wetland restoration, desilting ponds, building check dams, rainwater harvesting and tree plantation. On water stewardship, we have launched collective actions in Maharashtra and Rajasthan. And we are targeting to replenish 225,000 cubic meters of water this year. Our water use efficiency metrics are well on track as per the targets of this year.
- Accelerating to a low carbon world: We continue to drive down greenhouse gas emission, and it has reduced from 27,000 tons to 2,800 tons, a 90% reduction over the F '20 emissions. And we are sustaining zero fossil fuel use across our distilleries.
- Becoming sustainable by design: During the year, over 99% of the packaging material used was widely recyclable and we are well positioned to achieve our target of 100% by 2030. In addition, over 55% of the packaging material purchased was made of recycled material- this is against the 60% goal mapped for 2030. We have also launched regenerative agriculture programme in Punjab and Haryana in partnership with The Nature Conservancy India. The programme will initially equip over 5000 small-holder farmers with best practices, knowledge, and tools to help transform into regenerative agricultural practices.
Q. Being a beverage company, water is integral to your business. What steps have you taken towards water conservation in the recent past and what have the outcomes been like?
A. We as a brand truly believe in pioneering grain-to-glass sustainability and conservation of water is an essential part of all our campaigns. Our plan builds on a holistic approach by understanding the association between our use of water and the impact it has on our local communities, supply networks, and the environment.
Our grain to glass technique has proved extremely efficient to farmers, and we passionately advocate for water management in all our campaigns and operations. We have consistently tried to increase our water efficiency by 50% and eventually by 2030, we aim to use 30% less water in all our drinks. By 2026, we aim to replenish more water than we consume in all our water-stressed locations.
We have also made efforts to provide clean water and have invested in improving the sanitary conditions in and around our sites and water stressed markets.
Q. Having a packaged drinking water brand, how do you minimize plastic usage and what measures have you taken towards collection and recycling?
A. Recyclability, re-use and reduction of packaging waste is of strategic importance to our ESG goals. We drive this in every aspect of our value chain. For example, on reduction, we have already embarked on a journey of the phased removal of mono cartons from our premium Scotch brands in India VAT 69, Black & White, and Black Dog, in line with our effort to be zero-waste to landfill from our own operations and offices by 2030. The removal of mono cartons is expected to save 10,000 tonnes of paper and reduce 7,000 tonnes of carbon emissions annually.
On re-use, we have a very diligent program in place to harvest used bottles from the market and re-introduce them in the value chain. Roughly 15% of our overall glass bottles by volume are part of the re-use system and we are constantly evaluating opportunities to increase the quantum.
On recyclability, the concept is being used in many ways across our packaging ecosystem. For example, almost all of the boards we use for our labels are made from recycled pulp. On brands like Godawan and Signature, we go the extra mile to use FSC certified stock which also ensures ethical sourcing of the raw materials. We are also invested in the EPR program through which we have harvested and recycled plastic waste from the market, equivalent to 100% of the plastic we use in our packaging. Increasing recycled content and ensuring we consciously invest in recycling protocols is a necessary part of our Spirit of Progress 2030 endeavor.
Q. As per your website, Diageo India is close to achieving its 2026 goal of attaining Net Zero Carbon status. How far has this goal been achieved and what are the key steps that have helped you come this far?
A. Yes. We have been all about giving back to nature and what better way than trying to curb carbon emissions. We know how carbon emissions have played a crucial role in climate change. And I think it’s high time that we take matters into our hands. Using renewable energy to reduce our carbon footprint and reducing GHG emissions is a key priority for us.
To achieve this we have put multiple targets at all of our plants and manufacturing sites to implement an efficient and impactful way to hit net zero:
- We aspire to achieve 100% renewable energy use status. We have doubled our in-house solar energy generation capacity from 1.3 MW to 2.6 MW and have achieved about 98.5% renewable energy use in operations.
- In order to sequester carbon equivalent to residual emission from use of renewable fuel, we have initiated an ambitious plan of afforestation planting more than 50K trees by now and targeting 200K trees over next 3 years.
- Towards reducing Scope 3 emissions (emissions outside of our operations occurring elsewhere along our value chain), we have started work on Regenerative Agriculture with a special focus on Rice and Barley.
Q. Do you expect your suppliers and partners to adhere to certain standards of sustainability? How are you helping them to ensure responsible sourcing and lowering supply chain emissions?
A. We are working with our suppliers and advocating them to shift to renewable and low carbon fuels by helping them to adapt technologies and best supply chain practices. Significant amount of energy was consumed by our spirit supply chain. Over the last five years, we have worked with our spirit suppliers to transition them to renewable energy. As of last year, about 40% of the spirit we sourced was distilled with the help of renewable energy. We aim to source 60% Spirit distilled with renewable energy by 2026.
Few quick examples of such recent decisions included the phased removal of mono cartons from our premium Scotch brands in India VAT 69, Black & White, and Black Dog, in line with our effort to be zero-waste to landfill from our own operations and offices by 2030. The removal of mono cartons is expected to save 10,000 tonnes of paper and reduce 7,000 tonnes of carbon emissions annually.
Our Signature brand has committed to plantation of Mangroves to protect the shores of Odisha from future natural disasters and to restore the ecological balance of the region. Mangrove replenishment could also be a very effective strategy to combat climate change as mangroves can sequester carbon dioxide up to 2-4 times faster than a mature tropical forest. They also protect the coast from cyclonic storms.
In order to sequester carbon equivalent to residual emission from use of renewable fuel, we have an ambitious plan of afforestation - planting more than 50K trees by now and targeting 200,000 trees over next 3 years.
Towards reducing Scope 3 emissions (emissions outside of our operations occurring elsewhere along our value chain), we have started work on Regenerative Agriculture with a special focus on Rice and Barley.
Q. While consumers are familiar with the high quality of your brands, are they also aware of the various social and environmental initiatives taken by Diageo India? What kind of insights do your consumer studies reveal?
A. Ethical sourcing practices have become increasingly important to consumers around the world. The statistic you mentioned highlights the growing awareness and demand for socially responsible business practices. Consumers today are more conscious about the impact of their purchasing decisions on various social and environmental issues. They want to support companies that align with their values and demonstrate a commitment to ethical behavior throughout their supply chains. Ethical sourcing practices encompass a range of considerations, such as fair trade, responsible labor practices, environmental sustainability, animal welfare, and more.
Companies that prioritize ethical sourcing practices can benefit from improved brand reputation, customer loyalty, and increased sales. By meeting the expectations and values of their target market, these businesses are more likely to attract and retain customers who actively seek out ethical products and services. CEOs across the board are not only looking at ESG and CSR to gain customer loyalty but also to unlock new market segments and opportunities. Many consumers actively seek out products and services from companies that prioritize sustainability, social impact, and ethical practices. For example, on Godawan, consumers can trace every single bottle back to its origins right from the six row barley sourced from a specific cluster of farms in Rajasthan right up to the liquid, bottle, cork, labels & the mono-carton that go into the making of the artisanal single malt.
Additionally, investors are increasingly factoring in ESG and CSR criteria when making investment decisions. Companies that demonstrate strong ESG performance and a commitment to sustainable practices are more likely to attract investment and secure funding.
Overall, engaging in ESG and CSR initiatives is crucial for companies to maintain competitiveness in the marketplace. By aligning with the values and expectations of customers, investors, employees, and other stakeholders, businesses can enhance their brand reputation, access new market opportunities, manage risks, and attract the resources needed for long-term success.
Q. What does Diageo's CSR roadmap look like in the medium term (2-3 years)? Are there any new CSR projects in the pipeline that are likely to be launched by Diageo India this year?
A. - Promote Positive Drinking:
- Promoting responsible consumption by advocating moderation and addressing issues like underage drinking, drunk driving, and binge drinking.
- Conducting pre-and post-program surveys to measure attitude change among participants.
- Educating 60,000 students through the Act Art program to combat underage consumption.
- Collaborating with 5 Regional Transport Offices in 3 Indian states to educate 84,000 consumers about drunk driving hazards and reduce its occurrence through the Wrong Side of the Road program.
- Expanding program reach by introducing it in regional languages (Marathi, Telugu, Bengali, and Kannada).
- Delivering moderation messages to approximately 55,000 consumers via the DRINKiQ platform.
- ESG:
- As part of our Society 2030: Spirit of Progress goals, we have focused on driving ESG from grain to glass, moving India towards drinking better, not more, and leading inclusion and diversity.
- In our Learning for Life program, we have enrolled 1,400 students against a target of 1,100, with 59% of women completing the program and 868 being placed with an average salary of INR12,000 per month.
- On the water stewardship side, we continue to replenish more water than we consume and have launched collective actions in Maharashtra and Rajasthan, targeting to replenish 225,000 cubic meters of water this year.
- Our carbon footprint has seen an 80% reduction in greenhouse gas emissions, with a decrease from 27,000 tons to 2,800 tons over the F '20 emissions, while sustaining zero fossil fuel use across our distilleries.
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