Diageo revises sustainability goals amid climate resilience push 

UK – Alcoholic beverages giant Diageo has revised its sustainability targets as part of a renewed effort to strengthen climate resilience.  

The update was announced alongside the release of the company’s 2025 annual report. 

The maker of Johnnie Walker confirmed it now aims to reduce scope 1 and 2 emissions by 50% by 2030 and achieve net-zero in direct operations by 2040. Additionally, Diageo is targeting a 26% reduction in scope 3 emissions by 2030, with full net-zero across scopes 1, 2, and 3 set for 2050. 

In its previous sustainability plan, outlined in last year’s annual report, Diageo had committed to achieving net zero for scope 1 and 2 emissions by 2030. It also sought a 50% reduction in scope 3 emissions by 2030, based on a 2020 baseline. 

Changes have also been made to the company’s packaging goals. Diageo will now increase recycled content in its packaging to 50% by 2030, scaling back from its earlier 60% target. Furthermore, it has abandoned its previous ambition of reducing overall packaging weight by 10%. 

“Climate resilience is complex and key systems like regulation, policy frameworks and infrastructure have not advanced at the scale required,” the company said in a statement. 

Ewan Andrew, president of global supply and procurement and chief sustainability officer at Diageo, said: “In 2020, when we set ambitious environmental sustainability goals as part of our Spirit of Progress action plan, we didn’t have all the answers. But we knew progress would require innovation, long-term commitment and supportive policy environments.” 

Andrew added that Diageo now has “better data, deeper insights and a clearer view of the practical realities to deliver net zero”, noting that the updated goals provide “a stronger, more credible path forward”. 

Financially, Diageo reported a 0.1% decline in net sales to US$20.2 billion for the year ending 30 June 2025. The company cited unfavorable currency exchange rates and adjustments to its brand portfolio as key drivers.  

Reported operating profit dropped 27.8% to US$4.3 billion, impacted by impairment and restructuring costs, adverse exchange movements, and a decline in organic operating margin. 

In response to these pressures, Diageo has raised its cost-saving target to £625 million (US$721.3m), up from £500 million. The savings, to be achieved over the next three years, will focus on advertising and promotion efficiencies, reduced overheads, and supply chain optimization. 

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